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issue of c form in case of tax free goods

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This query is : Resolved

Suresh Kumar Verma (Querist)

09 June 2011 sir,
my assessee is registered dealer in chandigarh dealing in sweets (halwai goods) having registered in Punjab also. Sweets are taxable in chandigarh but taxfree in punjab.we are delivering goods i.e. sweets from chandigarh to punjab on C form. will the punjab authorities will issue C form for the goods purchased which are tax free in the state. Being the sweets are tax free in punjab. please clerify the point

CA Suresh Jain

CA Suresh Jain (Expert)

10 June 2011 The tax under the CST act is charged in the state wherefrom the transaction occasions the movement of goods and not in the state where the goods are delivered. The state from which goods are moved levies the tax on such goods and allows concessional rate against C form there should be no problem to the Punjab VAT officer to issue C form.for any furtherr assistance pl contact CA Suresh Jain at sureshjain.nj@gmail.com

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