A proprietory concern (XYZ) based in ahmedabad has a dealership of a pharmacheutical company (PQR co.) based in south india. XYZ procures order from customers in punjab and harayana. As soon as a order is placed, XYZ intimates PQR co. PQR co. then send the goods to customers at punjab & haryana. XYZ raises invoice which is sent by post to coustomers at punjab & Haryana. Goods does not enter gujarat.
Question : Is XYZ liable to issue a vatable invoice?
Every registered dealer whose turnover of sales exceeds the specified amount shall issue to the purchaser a serially numbered tvat invoice with prescribed particulars.
Just beacuse the goods are directly sent to punjab & haryana from PQR Co., XYZ escape from his duty of issuing invoice charged with CST.
Thanks prabhat for ur valuable input.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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