Vat / cst

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CA Neelam Maheshwari (Querist)
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19 January 2015 our company has its registered office in Rajasthan and all the invoices, etc are issued addressing Rajasthan.. Now, we are going to commence a project in Punjab for a company registered in banglore. we will issue bill to this company addressing banglore. we are purchasing material from punjab and will sale the same in punjab only to that company (banglore). Now my doubt is whether our company is liable to CST or punjab vat ??? (in short we are purchasing from punjab and selling in punjab. Only invoice will address banglore and rajasthan.) Thank you !! :)

CA Jayesh Moolchandani

CA Jayesh Moolchandani (Expert)
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20 January 2015 Dear Neelam,

The provision of CST attracts when the purchase and Sale of goods activity takes place outside the state. The provision of VAT attracts when trading activity comes within the state.

As the company is registered in the Karnataka State. The goods are purchased from the Punjab State, here the CST attracts.

The goods are sold outside the State, as again CST attracts.

In my opinion, you should form a Branch office in Punjab for that company. The Branch office will trade the purchase and sale activity. All the provision of VAT will imply nor the CST That will beneficial for claiming the Input Tax.

Thanks
Jayesh

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CA Neelam Maheshwari

CA Neelam Maheshwari (Querist)
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20 January 2015 Thanks Sir !!
That means Punjab vat will be applicable and we have to get register ourself under punjab vat. CST will not be applicable.

CA Neelam Maheshwari

CA Neelam Maheshwari (Querist)
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20 January 2015 Thanks Sir !!
That means Punjab vat will be applicable and we have to get register ourself under punjab vat. CST will not be applicable.