03 May 2012
respected sir, my query is that i m selling goods to New Delhi party from Mumbai and generate invoice on the address of New Delhi. new Delhi party's send there own vehicle to my business place and i m dispatched goods that way so it's a hand delivery and i m charging vat it is correct or not.
if i charged c.s.t then what supporting should i produced to department because it is a hand delivery and for o.m.s transaction supporting document like lorry receipt, courier receipt mandatory to produced.
03 May 2012
You mean to say ownership of goods have been transferred to New Delhi Party as soon as you have handed over the goods at your place itself!! I dont think charging VAT is correct. Sales tax should be charged based on movement of the goods. As movement of the goods is from one state to another state, CST should be charged. Even you can not deny that u are not aware about the movement of goods out of state as u are raising Invoice on Delhi address. Mere taking delivery of goods in at your place (i.e. in Mumbai) by the buyer does not alter the basis nature of transaction and accordingly CST should be applicable on the transaction mentioned. Further, normally VAT is chargeable to local registered dealer Please mention what benefit u r getting by charging VAT.
CAclubindia
