From the fact mentioned above , you are a traders . The Karnataka VAT law will apply to you . There is a threshold limit of turnover and if you cross that you have to charge VAT as per the applicable rate mentioned in the schedule .
The tax rate has to applied item wise item .
However there can be composition scheme under which you can charge the lower rate of tax if you purchase within state.
In the earthen pot , please check the schedule and i think it should be tax free . ( please check ) . On the shampoo there can be VAT liability . However as said above please check the turnover threshold and/or the composition scheme under the law .
we are Delhi based CA and if require you can contact our banglore associate for more details. we can be contacted on - prakash@psc.co.in
