Sale in transit

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Ramalinga H.B (Querist)
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20 December 2009 Hi all,
The karnataka dealer (X) place the order on mumbai manufacturer(Y) who has showroom in Delhi and instruct to Deliver the goods @ Delhi to (Z). Y charged VAT @ 12.50% on X. What forms should X issue or receive from Y & Z

Kindly reply soon. Thanks in Advance
Ram

manish soni

manish soni (Expert)
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21 December 2009 As per CST act for Transit sale one tranction should be interstate either sales or purchases.

In your case material movement start from Delhi & also end in Delhi. It is totaly VAT Tranction. No forms will be exchange in this case.

one more thing Consignee (Z) also can not take the input credit of of these Purchases.

X will declared the turnover (if not regaidtered in delhi) as a sales outside the state on full VAT.

if X regaistered in Delhi then declared the turnover in delhi, take input and rasied VAt inovice on Z. In this Z also take the input.