SECTION 6(2) UNDER CST ACT

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UTTAM LAL BASAK (Querist)
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07 May 2011 Mr. A (a regisetered dealer under WB VAT ACT and CST ACT)purchased goods from B, who is also a registered dealer under WB VAT ACTand CST Act and instruct the later to sent the goods to C who is a regiseterd dealer of Jharkhand sales tax ACT to whom the former sold goods by making invoice on him.In this process the dealer want to treat the sale as 6(2) sale under cst act.And it is also to be noted that B charged cst rate on A . Now while filing the cst return by A the portal shows a dialog box which means to say that to get the benefit of 6(2) sales under cst act the TIN of B should be of other state i.e. not of WB. So the dealer is unable to file the return.
In this regard I want an urgent reply which can help the dealer to file his return properly.

CA. Saurabh Agrawal

CA. Saurabh Agrawal (Expert)
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07 May 2011 In this case B has charged CST & sent goods directly to C. Then it is considered as interstate sale between B & C, and not between A & B. & there is no transaction between A & C as per CST point of view. So A can not claim benefit of sec 6(2).
B should have charged Vat on A. & A should have charged CST on C.

UTTAM LAL BASAK

UTTAM LAL BASAK (Querist)
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07 May 2011 No, this is not that case which i mean to say. My question is B charged cst @2% on A and A charged cst @2% on C. The main thing that has happened that A did not get any delivery from B but it instructs B to sent the goods to C to whom A sold the same goods.

sunil

sunil (Expert)
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08 May 2011 Dear Uttam u r correct, but in 6(2) transaction A cannot charge CST from C he may take reimbursement of the tax charged by B . As per view there is a mistake in the web portal.

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CA. Saurabh Agrawal

CA. Saurabh Agrawal (Expert)
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08 May 2011 B can not charge cst on A as this sale is within state.
A can charge cst on C as this sale is interstate sale. so cst charged by b is wrong so now B has to chage vat on A.

sandeep gupta

sandeep gupta (Expert)
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08 March 2012 transaction between a & b is inter state sales as goods is moving out of the state. a will issue c form to b as goods is moving out of the state. a will endorse billing documents in favour of his buyer at jharkhand before delivery of goods. then buyer at jharkhand will issue c form to a.

if dealer is not able to upload his return then he should approach to the department's help desk or technical department for the solve the issue.

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