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Clarification required for charging vat or cst
Could you please confirm whether tax is charged based on the party's billing address or shipping address?
For example, if a company's office or billing address is in Bombay and they have another office somewhere in Bangalore or Delhi etc. where the goods are to be shipped/delivered, then do we have to charge them VAT or CST?
On the other hand if their billing address/office is in Delhi or Chennai etc. and the goods have to be shipped/delivered locally in Bombay, then is VAT or CST applicable?
Please clarify the same?
Replies (1)
Depending upon the movement of goods (within the State or Outside the State) applicable VAT or CST would apply.
Example :
Company X in Delhi gets order from another Company Y in Delhi
Compnay Y asks Company X to deliver goods directly to its customer in Bangalore
Since there will be physical movement of goods from one State to another (i.e. from Delhi to Bangalore) - CST would apply.
While raising invoice by Company X, it will mention : Bill to Company Y Delhi and Ship to Bangalore.
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