For issuance of c-form- consignee address or usage point
This query is : Resolved
21 August 2012
If Company "A" which is situated at State of Tamil Nadu is selling a product to Company "B" which is siutated at State of Pondicherry and if company "B" uses the product in State of Tamil Nadu, can we issue C-Form considering that there is inter state sale transaction. My point is whether one has to see the consigee address or usage point in case of issuance of C-Form when sale transaction is taking place between two states.
A.Somasundaram
A.Somasundaram
21 August 2012
The legal term "situs of sale" is very much important to decide the interstate sale.So,
"a sale, being by definition, transfer of property, becomes taxable under Section 3(a)of CST Act if the movement of goods from one State to another is under a covenant or incident of the contract of sale and the property in the goods passes to the purchaser otherwise than by transfer of documents of title when the goods are in movement from one State to other. In respect of an inter-State sale, the tax is leviable only once and that indicates that two clauses of Section 3 are mutually exclusive.
Therefore c form can be issued if only the goods move physically from one state to another state. Delivery point is to be considered.
"a sale, being by definition, transfer of property, becomes taxable under Section 3(a)of CST Act if the movement of goods from one State to another is under a covenant or incident of the contract of sale and the property in the goods passes to the purchaser otherwise than by transfer of documents of title when the goods are in movement from one State to other. In respect of an inter-State sale, the tax is leviable only once and that indicates that two clauses of Section 3 are mutually exclusive.
Therefore c form can be issued if only the goods move physically from one state to another state. Delivery point is to be considered.
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
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Copyright software
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- Multiple trade mark
- Transporter Declaration form
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
