Finance Professional
171 Points
Joined January 2013
Dear Mr Amit Jain,
This is a tricky transaction. However, i suggest that you split up the transaction
1. For the Delhi Supply, ask your Supplier in Delhi to raise his tax invoice directly on the customer in Delhi. Since a Tax Invoice is being issued, your customer can claim the VAT as Input Credit.
2. For the Kanpur Supply,
a) Ask your supplier to raise the invoice on you charging CST against "C" Form and send the material through transport directly to the Kanpur Address. LR No should invariablly be mentioned in the suppliers invoice.
b) Raise your invoice on the Customer in Delhi showing a lump sum amount as value of the goods. This price will be including markup and Excise Duty, if any. Show as "Surcharge" the amount of CST mentioned in the Suppliers invoice.
c) Mention the LR Reference alongwith the Origin and Destination exactly as mentioned in the suppliers invoice. and clearly mention on the face of the invoice that the Transaction is u/s 6(2) of the CST Act.
d) Endorse the LR in the name of the Customer at a date during the transit.
e) Issue a "C" Form to the supplier and receive the E1 Form from him. Get C Form from the customer for the Kanpur Supply.
f) Include the transaction in your CST Purchase and Sale Returns at kolkata.
CAclubindia
