Central sale but delivery in same state

880 views 5 replies

Dear all,

I have made following transaction not received any form neither form "C" nor form E1 but we are showing this Purchase agt. Central and Sale into Central.

Now if there is any judgement / rule with in Central Sale u/s 6 or Vat act. please forward us.

Example as under :

A trader Mr X at Kolkata wants to buy some machinery, he contacted that machinery expert Mr Rajeev of Delhi, now Mr. Rajeev can’t find that machine in Delhi, but he has a freind Mr Y of Kolkata who manufactures that machine.

So in this case Mr Rajeev of Delhi will ask Mr Y of Kolkata to sell it to him, and deliver it to Mr X at Kolkata.

MR. Y has raised the invoice and charged local tax on his bill similarly Mr. rajeev had also made bill to MR.X at Kolkata.

Now there is any liability of form “C” and E1 also. If not please send some decision regarding this case at my mail id ranjeet @ venturecontrolsystems.com

Replies (5)

Y will raise invoice on Rajeev

Y will charge CST to Rajeev in invoice if form C is received from Rajeev.

Y will get Form C from Rajeev.

Y will give Form E1 to Rajeev.

 

Rajeev will raise invoice on X.

Rajeev will not charge any CST to X as it is exempt under section 6(2) of CST Act.

Rajeev will get Form C from X.

 

An expert may confirm.

Shivani

shivaniadream @ gmail.com

Tax applicability on the basis of movement of goods and since movement of goods within state (i.e. W.B) hence cst is not applicable and no liability of C form

Agree With Shivani Mam

Very well exlained by Shivani Mam.. yes

Hi,

This is when 3 firms are involved.

If Firm A in Maharashtra receives an order from Firm B in Gujarat. But the firm B wants the goods too be delivered in its branch in maharashtra and the invoice should be sent to gujarat. What is the tax apllicable VAT or CST? What documents or forms are to be issued?

Can any one suggest for this.

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