Applicability of tax on purchases from a dealer
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 June 2011
We have placed an order to M/s.Auma Enterprises who is the manufacturer of actuator spres. In his quotation he has quoted ED@10.3% and CST@2%against C form.he has requested to prepare the Purchase order on his dealer's name M/s.Techmech India. Now Techmech india has submitted a proforma invoice by quoting vat 14.5% extra instead of CST@2%.Now my question is what is the applicable CST/VST rate in this case.
MJ Krishnamurthy
(Expert)
23 June 2011
Mr Author,
Now it depends on where the dealer of the manufacturer is situated. The manufacturer may be out side state and therefore he quotes sales @2% cst aginst 'C' forms.He might have appointed a local distributor,who is in your own state, and so,he quotes local tax rates. In order to solve this problem you ask M/s Techmech India to do the sale in transit i.e.'E1' sale,in which case you can save the tax(2% on purchases)only.
Now it depends on where the dealer of the manufacturer is situated. The manufacturer may be out side state and therefore he quotes sales @2% cst aginst 'C' forms.He might have appointed a local distributor,who is in your own state, and so,he quotes local tax rates. In order to solve this problem you ask M/s Techmech India to do the sale in transit i.e.'E1' sale,in which case you can save the tax(2% on purchases)only.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Capital gains in IT returns
- Intimation under section 245
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Urd purchase entry in tally prime
- TDS- 2026-27 Q1 Correction
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
