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Issue ID: 5125
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what rate applicable?

Date 31 Dec 2012
Replies 1 Reply
Views 1202 Views
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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. (AI Summary)

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

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Replied on Dec 31, 2012
1.

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.

 

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