You must be knowing section 8(8) of CST Act1956, which lays down supplier is exempt from CST on supplies to SEZ unit or developers, for which Form I is the prescribe form.
in above said transaction, please clarify me the following:-
Suppose A ltd a supplier from bombay sold goods to B Ltd of Bangalore mentioning on the invoice billing address to B ltd and Delivery address to C ltd a SEZ unit in bangalore,the customer of B Ltd.( As per Purchase Order terms)
the above transaction is against Form I.
in the said transaction, whether B ltd can raise the tax invoice to client C ltd at 0% vat against material delivered at site by A ltd of Bombay mentioning as this transaction is against I form or if not how B Ltd can exemption from VAT/CST
please clarify with applicable sections if possible
14 April 2011
A should make billing for 'B' against @ 2% CST ag. Form 'C' otherwise Full rate of tax in MVAT on item.( B Ltd. should raise invoice ag. form "I" to 'C'.
Although A Ltd. delivered the material direclty to 'C', B Ltd. is not covered under Form 'I' as per your detail, so billing ag. form 'I' to B Ltd. is legally wrong.
CAclubindia
