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| *The Commerce Journal>>>India Taxes |
What is difference between central sales tax &VAT ? |
What is difference between central sales tax &VAT ? central sales taxes is applicable if sales are made out of state or one state to other state and vat is applicable if sale are made with in states CST is for inter state sales VAT for intrastate sales.Input VAT paid can be adjusted against Output VAT,while CST cannot be adjusted against VAT payable on local sales.However VAT paid on purchase can be adjusted against CST in certain cases where the seller has more of interstate sales than intrastate sales.Also states like Panjab allow the VAT paid on inputs to be adjusted against the good sent outside the state,to see that the state remains competitive. central sales tax is between state VAT is charged on sales within State. |
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