VAT on Fabric

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Dear Friends,

One of my friend is a trader in textile items. Generally he purchases fabric from Tamilnadu and sell to other states. He is based in Karnataka

My query is, as VAT is applicable on Fabric in TN, now his cost will increase, but as there is no VAT on fabric in KN, he can't charge it from his customers, so will give negative impact on his business, please advice.

Also, please advice, can he purchase from TN against 'C' Form.

 
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TAX PRACTITIONER


IF ANY DEALER REGISTERED UNDER ANY STATE ACT AND CST ACTS ,IF DEALS WITH ANY TAXABLE GOODS AS PER THE RULES AND REGULATIONS CONTAINED IN THE SAID STATE ACT ,THEN THE SAID DEALER IS LIABLE TO PAY TAXES AGAINST THE EFFECTED SALES WITH IN THE STATE AND OUTSIDE THE STATE ,NO MATTER WHETHER THE SAID SELLING GOODS BY THE SAID DEALER ARE TAXABLE OR EXEMPTED IN OTHER STATES . ANY  DEALER WHO  IS ON THE ROLLS OF THE ANY RESPECTIVE STATE BOUNDED TO ACT AGAINST RULES AND REGULATIONS ACCORDING TO THAT STATE.

 

G.S.CHANDRA SHAKER 

SALES TAX PRACTITIONER

MOBILE.NO.9395323341/9951038001

 
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service


Sir,

Is it possible for the trader in Karnataka to issue 'C' Form to Tamilnadu supplier. Please advice.


Originally posted by : chandra shaker


IF ANY DEALER REGISTERED UNDER ANY STATE ACT AND CST ACTS ,IF DEALS WITH ANY TAXABLE GOODS AS PER THE RULES AND REGULATIONS CONTAINED IN THE SAID STATE ACT ,THEN THE SAID DEALER IS LIABLE TO PAY TAXES AGAINST THE EFFECTED SALES WITH IN THE STATE AND OUTSIDE THE STATE ,NO MATTER WHETHER THE SAID SELLING GOODS BY THE SAID DEALER ARE TAXABLE OR EXEMPTED IN OTHER STATES . ANY  DEALER WHO  IS ON THE ROLLS OF THE ANY RESPECTIVE STATE BOUNDED TO ACT AGAINST RULES AND REGULATIONS ACCORDING TO THAT STATE.

 

G.S.CHANDRA SHAKER 

SALES TAX PRACTITIONER

MOBILE.NO.9395323341/9951038001
 
Reply   
 
service


Sir,

Is it possible for the trader in Karnataka to issue 'C' Form to Tamilnadu supplier. Please advice.


Originally posted by : chandra shaker


IF ANY DEALER REGISTERED UNDER ANY STATE ACT AND CST ACTS ,IF DEALS WITH ANY TAXABLE GOODS AS PER THE RULES AND REGULATIONS CONTAINED IN THE SAID STATE ACT ,THEN THE SAID DEALER IS LIABLE TO PAY TAXES AGAINST THE EFFECTED SALES WITH IN THE STATE AND OUTSIDE THE STATE ,NO MATTER WHETHER THE SAID SELLING GOODS BY THE SAID DEALER ARE TAXABLE OR EXEMPTED IN OTHER STATES . ANY  DEALER WHO  IS ON THE ROLLS OF THE ANY RESPECTIVE STATE BOUNDED TO ACT AGAINST RULES AND REGULATIONS ACCORDING TO THAT STATE.

 

G.S.CHANDRA SHAKER 

SALES TAX PRACTITIONER

MOBILE.NO.9395323341/9951038001
 
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TAX PRACTITIONER


IN YOUR CASE IF THE OTHER PARTY IS A REGISTERED DEALER THEN THE SAID PARTY CAN ISSUE STATUTORY FORM 'C' AGAINST THE PURCHASES EFFECTED BY HIM FROM OTHER STATE IRRESPECTIVE OF ANY GOODS I.E.,EITHER TAXABLE OR EXEMPTED GOODS.

IT IS MANDATE THAT BOTH THE PARTIES (CONSIGNOR AND CONSIGNEE ) SHOULD BE A REGISTERED DEALER ON THE ROLLS OF CTO .AS PER CST ACTS EITHER OF BOTH THE PARTIES CAN EFFECTED THE SALE AND PURCHASE TRANSACTION IRRESPECTIVE OF ANY GOODS AGAISNT THE STATUTORY FORM 'C' or E-1 SALES or H Form sales.

Any more doubts.........

 

 
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service


Sir,

Will the dealer in Karnataka get the required 'C' Form from the department, as the said item is not taxable in Karnataka. Can the department refuse to issue 'C' Form on the point that the said item is not taxable in our state. Please advice.

 
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TAX PRACTITIONER


OBVIOUSLY , IF THE SAID DEALER IS  REGISTERED THEN THE DEPARTMENT WILL ISSUE 'C' FORM FOR THE EFFECTED PURCHASES BY HIM EVEN THOUGH THE SAID COMMODITY IS EXEMPTED UNDER THEIR STATE ACTS. 

EXEMPTED COMMODITIES WERE PRESCRIBED IN SEPERATE SCHEDULES IN THEIR STATE VAT ACTS AND RULES AND ANY DEALER MAY EFFECT THE SAID TRANSACTIONS WITH OR WITHOUT STATUTORY FORMS IF THEY ARE REGISTERED ON THERI ROLLS AND CLAIM EXEMPTION ON THE TOTAL TURNOVERS WITH OUT ANY PAYMENT OF TAXES.

 
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service


Sir,

Thanks.

 
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Dear Friends, One of my friend is a trader in textile items. Generally he purchases fabric from Maharashtra and sell to other states. He is based in Mumbai  My query is, as VAT is applicable on Fabric in TN, now his cost will increase, but as there is no VAT on fabric in Maharashtra , he can't charge it from his customers, so will give negative impact on his business, please advice. Also, please advice, can he purchase from TN against 'C' Form.

 

 
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