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Sales Tax in India

VAT and Sales Tax - Started By: - Munim Team - Dated:- 11-6-2015 Last Replied Date:- 12-12-2015 - Sales tax is the tax paid to the government for the sale of goods. This is generally a fixed percentage and varies from place to place as well as produc .....

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ral Sales Tax (CST) - Collected by Central GovernmentWhen the trading is done in the same state i.e. both the parties, buyer and seller are from the same state then the tax applied is VAT but when the parties are from different states then the tax ap .....

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in State A itself.Suppose Cost + Margin for the product at Manufacturer’s end is ₹ 100. If the VAT for state A is 10 % then the total VAT amount for this transaction will be ₹ 10, the responsibility to pay this amount to the authority wil .....

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y ₹ 1 as tax because the Manufacturer has already paid ₹ 10 as tax to the Government. Now the wholesaler will provide tax certificate of ₹ 10 and ₹ 1 to the retailer.If the retailer again keeps a margin of ₹ 10 then the .....

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as to pay only ₹ 1 as VAT.This is termed as the Input Credit Scheme where the amount of tax is not continuously added for each end user. The final amount of tax levied for this product is ₹ 12 only.Scenario 2:Suppose the Manufacturer of c .....

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s to its branch in State B to cater to the wholesaler in Sate B i.e. Tax invoice made in State B. Now, this would be considered as intrastate trading and the tax applied will be VAT of State B. The Calculation of the VAT would be similar to that in S .....

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goods has manufacturing in state A and selling his product to the wholesaler in State B. Manufacturer does not have any branch in State B.In this scenario, when manufacturer doesn’t have any facility to raise tax invoice from the wholesaler invoice, .....

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y) the value of product for the Wholesaler will be ₹ 108 as input credit would not be available.If the Wholesaler keeps margin of ₹ 2 with himself then Cost + Margin at Wholesaler’s end will be ₹ 110 and selling to the Retailer in S .....

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