Central sales tax / vat

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Narendra Kumar

42 Points Posted on 09 September 2015

Dear Friends,

I have two problems and seek your professional advise. These are as under:

1. Suppose a Purchaser 'X' from UP after purchasing goods from the seller 'Y' of UP itself moved the goods to MP for selling to 'Z' of MP, then should it be treated as Central Sales or Local Sales. If Central Sales,then can the purchaser 'X' give Form C to the Seller 'Y' to avail the benefit of lower rate of tax. Can this be treates as Local Sales.

2. Suppose a Purchaser 'X' from MP after purchasing goods from the seller 'Y' of UP moved the goods to other place in UP for selling the goods to 'Z' of UP, then should it be treated as Central Sales or Local Sales. If it is treated as Local Sales then at the time of filling of VAT Return, what TIN Number 'Y' the seller will use. Or it will be treated as Local Sales to an Unregistered Dealer. If it is treated as Central Sales, the purchaser 'X' can give Form C to Seller 'Y'.

Your kind advise will help me a lot.

Thanks and Regards

Narendra

Replies (2)

Deepak sharma

Learner

889 Points Posted on 09 September 2015

Dear Narendra ji,

In Condition 1) X and Y both from UP, so it is Local Purchase of X from Y, When X sold to Z of MP it will be called Central Sale. X no need to issue any statutory form to Y. as both of them belongs from same state.

In Case 2) X (MP) Purchase from Y(UP) - Central Purchase

X(MP) Sold to Z (UP) - Central Sale

Local Sale - Transaction of Goods Made within State

Central Sale - Transaction of Goods made interstate (Outside the State)

Regards

Deepak Sharma

dsharma8583 @ gmail.com