CST or VAT which one is applicable
This query is : Resolved
Sunil Mate
(Querist)
15 July 2011
Dear Sir,
my case is
1) i received the Purchase order From UP Customer for manufacturing of Moulds and delivery terms mentioned in PO are Delivery at UP Plant
2) After Manufacturing, we raised the bill to UP Customer by Charging him CST @2%.
3) but later on as per instruction of UP Customer, we transfer the finished mould within the state to our branch for manufacturing of Customer specified goods by using the mould.
4) Here, Customer prepare the Seprate Loan Document which is Clearly mentioned that the Proporty (i.e. Moulds) are in the name of customer of UP and we have to use only for Mfg. purpose of customer.
5) Now, Customer claiming that CST is not chargeble on this transaction and we must charge the VAT on the same
Please suggest, which tax i can charged.
my case is
1) i received the Purchase order From UP Customer for manufacturing of Moulds and delivery terms mentioned in PO are Delivery at UP Plant
2) After Manufacturing, we raised the bill to UP Customer by Charging him CST @2%.
3) but later on as per instruction of UP Customer, we transfer the finished mould within the state to our branch for manufacturing of Customer specified goods by using the mould.
4) Here, Customer prepare the Seprate Loan Document which is Clearly mentioned that the Proporty (i.e. Moulds) are in the name of customer of UP and we have to use only for Mfg. purpose of customer.
5) Now, Customer claiming that CST is not chargeble on this transaction and we must charge the VAT on the same
Please suggest, which tax i can charged.
U S Sharma
(Expert)
16 July 2011
as goods did not left the state, its a local sale, hence VAT is applicable
ABHISEK TOSNIWAL
(Expert)
16 July 2011
yes , since the goods are ultimately sold within the state so VAT is applicable.
Regards
Abhisek tosniwal
Regards
Abhisek tosniwal
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