We make a Purchases Order to Mr. A (Local Party) He ordered to Mr. B ( Central) to send the material and make a sale in transit. And raise a bill (Mr. A) 1. Does we liable to VAT 2. Which party we should recorded in books of Account 3. Does we liable to issue C Form
11 September 2010
B will issue invoice to A with 2% CST and the goods will directly be transfered from B to you and same will be reflected in the L.R. A will issue invoice to you without charging any tax You will have to record such purchase as out of state purchase and you have to issue C Form to A Regards
CAclubindia
