05 October 2009
Hello, I m having following querry....
Suppose I m having business in Mumbai of Trading in Dry Fruites. My business gets expanded.I keep a meeting of my salesmen in Kolkata West Bengal.
For the occasion, I places an oreder with Kolkata based "JUTE" supplier Party to make arrangement to give Jute bags to the Salesmen meeting in Kolkata.
Question:- 1) Party can make invoicing on Maharashtra Office with 2% CST? (Doubt:-if yes, then how it can, as the goods are not delivered outside the West Bengol) 2) Suppose, I m having, one branch over there in west bengal...,whether the party can charge VAT 4%? the Branch can take vat input?(Doubt :-as the goods are promotional items) 3)What to do in such situation when the party wants to issue the bill on Mahashtra?
1) as the party is making delivery of goods in state of westbengal, he cannot charge u CST but he has to charge Local Tax.
2) In case u have a branch in kolkatta, the branch can purchase on ur benhalf and send to you in maharashtra against form F(as it can be understood from your queery the sole purpose of the branch will to purchase jute for you and send it to maharashtra). in that case, in state of maharashtra, there is retention of 3% of net purchase price for transfer of goods to other state against Form F.(need to check whether the same provision is there in west bengal or not). in the above case there will loss to you of 3%.
3) it is better to ask the supplier to supply the same to u in the state of maharashtra against the Form C @ 2% u save 1%
CAclubindia
