interstate sales transaction.

Save Share

This query is : Resolved

P.S.VISHWANATHAN

P.S.VISHWANATHAN (Querist)

20 March 2010 WE ARE A DEALER BASED IN DELHI AND ALMOST ALL OUR SALES ARE INTERSTATE SALES. QUITE A FEW OF THE SUPPLIES ARE PICKED UP BY OUR CUSTOMERS FROM OUR FACTORY AND THESE ARE NOT SUPPORTED BY LORRY RECEIPTS. WE WOULD LIKE A CLARIFICATION AS TO WHETHER THESE SALES THOUGH SUPPORTED BY FORM C, WILL BE CLASSIFIED AS A NON INTERSTATE SALES AND TAXED ACCORDINGLY?

M Prabhakar Menon

M Prabhakar Menon (Expert)

20 March 2010 An inter state sale takes place only if the delivery of the goods takes place in a state other than the state where the sale originates from. Under the Sale of Goods Act 1930 a sale is complete only when the terms of sale have been fulfilled, if in your case delivery is the criterea for completion of the sale transaction then it becomes a local sale and CST will not apply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now