RATE OF VALUE ADDED TAX

[SURYAKANT MITHBAVKAR]

our organisation is in Maharashtra if we are buying some materials from Faridabad please guide us rate of Central Sales Tax .

[YAGAY and SUN]

The tax rate under Haryana Value Added Tax would be 5.25% or 12.50% + Surcharge @ 5% on tax amount.  If you are able to provide the C form, then it would be 2% against C form.

Please clarify the classification of the material which you intent to purchase from Faridabad.  If this material falls under Schedule C of the HVAT Act, 2003 as amended time to time, then it would attract tax according to the Schedule C, otherwise peak rate would be applicable.

AI Summary

C form reduces interstate VAT liability to a reduced concessional tax rate when produced for purchases from another state. Interstate purchases are eligible for concessional central sales tax treatment when the purchaser furnishes a C form; without the C form higher VAT/CST rates and surcharge apply. Tax incidence also depends on whether the goods are classified under Schedule C of the HVAT, in which case the schedule rate governs, otherwise the peak HVAT rate applies.