TAX

[Former Member]

What is sales Tax?

What is VAT? exact meaning of these..

[ajitsingh6]

Dear,

What is sales Tax?

Sales Tax is a tax, levied on the sale or purchase of goods. There are two kinds of Sales Tax i.e. Central Sales Tax, imposed by the Centre and Local Sales Tax, imposed by each state.

What is VAT?

Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services.

It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer.

Regards

AJIT K SINGH

[Former Member]

VAT is appliacble when your goods are moving within same state and CST is applicable when your goods are moving intra state. TAx determination in SD happens through pricing condition UTXJ under which you mentioned tax code, you can maintain taxcode through T code FTXP where % of tax is mentioned against your tax code. Hope this will help you in understanding.

[Former Member]

Hi vaibahv

I hope you do have access to internet ,so do your research for better understanding of things and then come with good questions.

By the way :Sales Tax is tax collected on sales of commodity ,for whcih rates are decided by Govt.

Central sales Tax is decided and collected an used in Central Govt budget.

While VAT which is a Value added Tax is state govt level tax. this is a novel concept to avoid double or repeated taxation to end consumers while goods pass through a chanin of intermediaries from manufacturer before reaching to consumers.

mandar