Should I buy a Solid State Disk?

Can VAT input be added to the sales done outside my state?

• I am from Chennai and Say I buy a Computer Hard disk from a Chennai Distributor for Rs. 4000 He bills me at Gross Amount : Rs. 3809.524 Tax % : 5% Tax Amount : Rs. 190.4762 Total Payable amount : Rs. 4000 Now I sell the same to a Bangalore Customer through my eCommerce Website or through some Marketplace Portal. What tax will I have to Pay to TN Govt., VAT or CST ? And Can I Input / reduce the Tax , Rs. 190.4762 that is paid during my Purchase to Chennai Distributor for my sales made outside Tamil Nadu? I am not much experienced with Accounts / Taxes. So a layman explaination by a CA would help me alot. PS : Both Distributor(From where i fetch goods) and the Retailer/eCommerce Portal Owner (Me - The Seller) belong to same State. But Customer is from Other State.

• Answer:

  I'll try my best to make this as simple as possible. You (Seller) - XYZ (Buyer). You are based in TN. XYZ is based in Bangalore. You sell certain goods to XYZ. CST will be payable to the State of TN on such a sale. You will be able to claim input tax credit (paid on your original purchase in TN) against your total output tax (including CST paid in TN), unless there are specific restrictions under the TN VAT Act (which I don't think there should be, but I am not very familiar with the TN Act). Hope this was simple enough.This answer is not a substitute for professional legal advice....