Value Added Tax

Reliefs
o Tax exemption on paddy, rice, wheat, pulses and products of rice
and wheat continued for one more year.
o Reduction in tax on scented arecanut powder excluding mixture from
14.5% to 5.5%
o Increase in registration limit from Rs.5 lakhs of annual turnover to
Rs.7.5 lakhs.
o Waiver of penalty payable for default in filing of returns by small
dealers who have no tax liability and opt for cancellation of their
registration.
o Increase in minimum sale value fixed for obtaining electronic
delivery note (e-SUGAM) from Rs.20000 to Rs.25000.
o Exemption to works contractors from compulsory registration
provision.
o Suitable administrative measures to enable dealers to rectify
mistakes in the returns which have no tax implication.
o Provision for single second appeal against reassessment for several
tax periods of one financial year.

Additional Resources Mobilization Measures

o Levy 5.5% VAT on liquor sold by bar and restaurants operating in
urban areas and by clubs, lodging houses and star hotels.

Rationalisation measure
o Provision for filing of annual statements by dealers.

Luxury Tax

Reliefs

o Increase in minimum daily rent for taxation from Rs.500 to Rs.750.

Entry Tax

Reliefs
o Tax exemption on ethanol brought for mixing with petrol.

Rationalisation measure
o Provision for filing of monthly returns by dealers and deemed
acceptance of such returns as under VAT.

Excise
o Revenue collection target of Rs.14,400 crores fixed for the year
2014-15.

Additional Resources Mobilization Measures

o Increase in Additional Excise Duty on Beer from 122% to 135 %
o Increase in Licence fee of Primary Distillery, Indian Liquor
Manufacturing Distillery and Brewery by 50%.
o Increase in Licence fee of MSIL retail liquor shops (CL-11C) from
Rs.1 lakh to Rs.3 lakhs.
o Increase in fee for shifting of shops from one place to another, from
existing 25% to 50% of the Licence fee charged on the Licence in
respect of such shops.

Stamps and Registration

o Revenue collection target is fixed at Rs.7450 crores for 2014-15.
o Stamp Duty exemption on subsequent sale deed relating to alternate
site allotted by the Bangalore Development Authority, consequent to
the denotification of the land.

1.

The rate of CST on inter-State sale to registered dealers (against Form-C)

shall stand reduced from 4% to 3% or the rate of VAT applicable in the State of the
selling dealer, whichever is lower.(Present rate of CST Is 2 %)

2.

The rate of CST on inter-State sale other than sale to registered dealers
shall be the rate of VAT applicable in the State of the selling dealer.

3.

The rate of CST on inter-State sale to Government Departments shall also

be the rate of VAT applicable in the State of the selling dealer, indicated at (b)
above. The facility of inter-State purchases by Government Departments against
Form-D stands withdrawn.
so after these amendments ,tax rates in various possible situation has been
explained in the table given below

SR NO
PARTICULARS
WITH C FORM
WITHOUT C FORM
1
If Goods are exempted from tax unconditionally
Nil
Nil
2
if vat rate in the state from which material sold, is less than the Normal CST
rate at present CST rate is 2 %
vat rate of the state from which goods sold will be applicable
vat rate of the state from which goods sold will be applicable
3
if vat rate in the state from which material sold, is more than the Normal
CST rate at present CST rate is 2 %
2 percent

vat rate of the state from which goods sold will be applicable
4
Sale to unregistered dealer
N.A
vat rate of the state from which goods sold will be applicable
5
sale to registered Dealer

2 percent or state vat rate which ever is less

vat rate of the state from which goods sold will be applicable

Now point wise answer to your queries are given here under.

1.

Sale with C-form rate of CST or Vat rate for that good of seller's state,
which ever is less will be applicable .In case of sale without form C ,Vat rate of
seller's state is applicable.

2.

Sale of Govt Department is now treated like a unregistered dealer so Vat

rate of the seller's state is applicable in sale to Govt Departments.
- See more at: http://www.simpletaxindia.net/2009/03/cst-rate-without-c-form-d-forminput.html#sthash.z8TPyF2Y.dpuf