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CST transaction

This query is : Resolved 
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(Querist)
08 November 2010 hI

I am a bangalore based company, i wanted to supply some materials to chennai, my supplier has got branch in chennnai, can i buy goods at CST 2% aganist form c and supply to my client in chennai itself.

Is this transcation legal.
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
08 November 2010 No, in case of CST sale, goods must move to inter state.
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Dayal

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Dayal (Expert)
09 November 2010 For CST Transaction there has to be interstate movement of goods.

Therefore this transaction cannot be executed as it becomes a local sale (intra state) within the state.
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B R Ramesh

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B R Ramesh (Expert)
13 November 2010

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