Vat - point of taxation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 Hello Sir,

Our factory premises is registered Under MP Vat, however our Head Office is in Mumbai.
Now my query is if the goods purchased in Mumbai should charged with CST or Vat.
We have only registered under MP Vat.
Will it be charged on the basis of Delivery Address or as per TIN Registered ?

CA Parul Saxena

CA Parul Saxena (Expert)
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24 August 2013 CST would be applicable.......

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 But the dealer generally argues that we are delivering goods within Maharashtra so we will charge VAT only.

Any implication if VAT is charged by dealer?

If cst is charged, then what should be the addressed on Invoice - of Mumbai or Factory premises ? goods are consumed at mumbai only

CA UMESH DULAL

CA UMESH DULAL (Expert)
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24 August 2013 Agree with CA Parul,

VAT is consumption based tax system so CST will be charged.

If the goods is delivered in Mumbai, then you will not be able to send goods to MP as you are not registered with M-VAT.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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25 August 2013 You are registered in MP only.In Mumbai a purchase can not be made by referring to MP TIN no.If the goods are consumed in Mumbai only,as you say in the second note,let the invoice be addressed to the Mumbai address only.As the delivery is also taken locally it can not become an interstate sale.If the goods are sent to MP,then MP address and TIN no are to be quoted in the invoice... ....mjk

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