03 December 2011
Dear Club Members We are the registered dealer under Punjab Value Added Tax and Central Sale tax in Punjab Mohali. We are providing warehouse and logistic services and sale of packing material stickers and labels.We have 90 locations in all over the country in different states.
Now sometime material to be sold is required at Mumabai and we purchase from Delhi.Is it possible we can purchase material as:
Bill to: Mohali Office Consignee: Mumbai Location
OR We have to registered in Mumbai also if we purcahse material against Form C. If we pay full CST then what will be the status of CST registration in Mumbai means whether is it mandatory or not.
10 December 2011
Mr R Bhardwaj How you have been running your business at 90 locations all over India so far?.However,you can do it two ways. You can use the places for booking orders and arrange other sevices through them. They can take orders from cusomers and directly you can supply to them as CST sale charging less tax aginst 'C' form.Or,if you want to store your goods in all these locations,either you have to appoint agents/franchisiees or open your own branches. Your own branches are to be registered in each state under VAT and CST laws. Being in Punjab,you can buy goods from Delhi and sell to the Mumbai party on transfer of documents method,without any aditional tax.The supplier of Delhi has to issue an E1 form and you have to issue a letter authorising him to directly despatch the goods to the customer at Mumbai.The Mumbai buyer has to issue a 'C' form.In this way all other sales can be done....MJK
12 December 2011
Thank you for this very precise answer.Earlier we have been running our business as we are providing services of warehousing and logistics and service tax is appliable to us.But now parties to whom we provide services required material from us.so the query arises.
CAclubindia
