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Nagaraj (Querist)

18 February 2011 Sir,

One of our client in bangalore and they are executing work in bombay, from bombay they supplied material to near bombay places only. our client office in bangalore should we charge CST or VAT?
If we charge Vat that is not our local sales, for CST movement of goods from one state to another state. in our case there is no movement of goods from one state to another state.

How to go about this issue and how to account in our book regaring sales tax issue?

Thanks in Advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

18 February 2011 For charging CST there should be a movement for goods from one state to anothet state, in your case local vat only apply. you client having registration in Bombay, they can claim input you are charging otherwise no

Nagaraj

Nagaraj (Querist)

18 February 2011 Thank you Ramesh,

1. our client doesnot have vat registration in Bombay.
2. In our client Book which sale and which sales tax should we account?

Kindly clarify.

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