Sales transaction

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NARESH (Querist)
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02 October 2012 Dear Sir,

I have clarification and to be cleared from your end. Please note down the following,

'A'-Karnataka is the Purchaser and would like to buy the goods from 'B' Maharastra (Seller) and to be sold to 'C'-Maharastra (Final Customer).

My clarification is given below,

1) 'B' is not ready to issue Form 'C' hence the 'A' is in Karnataka. Orelse 'B' will be charging as Full CST Tax (5% or 12.5%)

2) In this case, if they charge local tax of Maharastra, is it okey and its wrong

Best Regards
Naresh

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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02 October 2012 I think its okk to charge local tax, if A does not let the goods exit maharashtra itself.. like, if B is ready to drop goods at C's place directly, it will ease the job of A., othervise A can make an arrangement to deliver goods from B's premises to C's premises...

NARESH

NARESH (Querist)
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02 October 2012 Please let me know the how to raise the Invoice by 'A' to 'C'.

1) Will 'A' charge Full Tax of Karnataka (14.5% -without Form 'C')

2) Or else how they will raise.

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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02 October 2012 Sorry m not that much into IDT., let some expert from this field answer abt it..

NARESH

NARESH (Querist)
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02 October 2012 ok.. we will be waiting for the answer

Amol S Joglekar

Amol S Joglekar (Expert)
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02 October 2012 there is no any entry of goods into Karnataka state, physically. It is thus outside the scope of Karnataka vat. You are paying CST at full rate as A is not ready to issue c form. A can very well raise the bill/invoice onto C. A is not exigible to Karnataka VAT in this case as the movement of goods is out of Karnataka.

NARESH

NARESH (Querist)
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02 October 2012 It means that 'B' can charge fulltax charges to 'A' hence its Interstate & not against Form 'C'. In this case, 'A' can raise invoice to 'C' on full tax of Karnataka.

Meaning is Basic Price + 14.5% or 5.5% VAT.
Or else,

thay can do E-1 Tranaction i think... your advice please...

Amol S Joglekar

Amol S Joglekar (Expert)
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03 October 2012 Purchases OKS.. out of Karnataka State
Movement of goods... out of Karnataka
Sales OKS... Out of Karnataka State. So for "A", KVAT is NOT APPLICABLE. Coming to MVAT..... A is not a registered dealer under MVAT and "B" is charging full CST.

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