Local Sales Tax is the tax imposed by the respective state government.
Central Sales Tax is the tax imposed by the Central Government.
Value Added Tax is the tax imposed for the addition of value for that particular material.
Local sales tax & central sales tax. Local sales tax is intra state whereas CST is inter state. VAT is the value added tax which is imposed for the addition of value for a particular product.
Example of LST : Point of sale i.e. delivering plant & ship to party are within the same state. The rates are defined by the respective state governments.
Example of CST : The Delivering plant & Ship to party geographic locations are 2 different states. At the point of sales from one state, the ST goes to that state govt. & consignment is despatched to the Ship to party. Once that consignment is received at the ship to party state, sales tax will be levied once the sales is registered there. For this case, the LST that is applicable by the Ship to party further will not be applicable in all probability to be captured in SAP.
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