My company which is situated in Delhi have got order for supply of Electrical Material from a party of Rajasthan and we have placed the order to the supplier of Chanigarh. The Chandigarh Supplier have again placed the order to Supplier of Rajasthan. Now the end Supplier and end Buyer both are from Rajasthan. End supplier have supplied the material locally to Rajasthan Buyer after charging the VAT, showing the Rajasthan Buyer as Consignee and Chandigarh supplier as Buyer.
I am unable to find the tax implication on Chandigarh Supplier and Delhi Supplier (my company), whether the Chandigarh supplier can bill the same amount to Delhi Supplier and Delhi Supplier can bill the same amount to Rajasthan Buyer and what will be tax liability in case of Chandigarh Supplier & Delhi Supplier.
CAclubindia
