22 February 2008
Sir, One of my clients in Maharashtra purchases goods from Delhi and sells the same in Delhi itself. The goods do not travel in Maharashtra. The party from whom he purchases directly dispatches the goods to our customer and charges Delhi VAT on the same and mentions as Billed to : My Client, Maharashtra ; Dispatch to : Our Delhi Customer. We have not claimed the input set-off of any amount and we are not paying any VAT / CST in this sale transactions. Kindly give your valuable opinion on thisa issue.
The Second issue is whether if our purchase and sale in Delhi exceeds Rs 5 Lakhs whether we need to obtain VAT / CST Registration in Delhi .
What is the address on the Invoice raised on your client, is it Maharasthra.
What is the Tax charged by the delhi supplier, CST or Local tax
When selling in Delhi, do you raise your commercial invoice from maharashtra, obviously your client must be raising, else how does he receive the payment from the delhi customer.
Once you have clarified, we shall be in a better position to respond.
But from the fair view, you will need to seek Delhi Vat registration for conducting sale in delhi
CAclubindia
