what rate applicable?

[Guest]

what rate will be applicable for a regd. dealer in gujarat if selling goods to a party in Kolkata?? reply as soon as possible..

[YAGAY andSUN]

The rate of tax under interstate sales are governed by the rate of VAT levied in the State from where goods are being sold.

if the goods under 5% tax schedule then it will be 5%.  But if the customer is willing to provide you with the Form C then it will be 2%.

If the peak rate is applicable @ 14% plus cess or additional tax (as the case may be), then, you would have to charge the peak rate.

 

AI Summary

Interstate VAT rate depends on seller's state schedule; concessional rate may apply where buyer furnishes Form C. The VAT rate for interstate sales is governed by the tax schedule of the State from which goods are sold; scheduled lower rates apply unless the purchaser furnishes a valid Form C, in which case a concessional rate applies, while goods subject to the selling State's peak rate must attract that peak rate including any applicable cess or additional tax.