VAT or CST

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This query is : Resolved

Amit J (Querist)

23 November 2008 XYZ dealer located at Pune, Maharashtra, purchases goods from PQR Chennai, Tamilnadu with 2% CST . Same goods are resale to ABC Thane, Maharashtra. In this case while reselling the goods which sales tax is applicable, whether VAT or CST? In this transaction goods are directly deliverd from Chennai to Thane & Invoiced to Chennai to Pune .

G Muralidharan

G Muralidharan (Expert)

24 November 2008 1) while selling the goods at Thane, local sales tax act, that is Maharashtra State VAT Act would apply - It is a VAT Transaction
2) If the goods are directly delivered from Chennai to Thane and invoiced from Chennai to Pune:

I presume XYZ Ltd. has branch at Chennai, in that case, it can be direct interstate sale coming under CST Act.

Alternatively, "in transit" sale can be thought of. In that XYZ need not have branch at Chennai

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

24 November 2008 It is a transaction covered under cst act.

sunil

sunil (Expert)

25 November 2008 Please refer 6(2) of CST Act, 1956,You may avail exemption from tax if proper endorsement of title of goods during the transit.Please issue form "C" fro PQR Chennai and obtain form form E-1 from the same , please also collect form "C" from the ABC Thane.

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