Sir, Our Client is a tractor manufacturing Co in Punjab. It has dealers in various States which purchase tractors from the company and the Company is not under any contract to transport the goods to the state of that Dealer. Goods are sold at the gate of the factory and there is no other obligation of the Company for Transportation. Is our client Company required to charge CST in the bills issued to the dealers and why? Or state VAT should be charged ?
1. Sales made within Punjab- Local VAT will apply.
2. Sales made outside Punjab ,i.e, Inter-state sales- then CST is applicable.
In addition to this take notice of Excise Duty at the time of removal of tractors from your factory.I hope this solves your query.
Sir,
can you please tell me whether in the transaction of sale, TRANSPORTATION by the seller from its factory to the state of purchaser necessary to be called as an interstate sale ?
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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