Ankit (C.A.-Student) 14 November 2013
Hello A dealer is registered under UP VAT and he Buys & Sells some food items in Delhi without taking goods to UP or other states. 1) Does he have to pay CST on buying goods from Delhi? 2) Does he have to pay CST on sales made in Delhi? 3) Can he claim benefit of C form while buying goods? 4) At what rates he has to pay tax, if he can't claim C form benefit, on both buying and selling? Thanks
RAJU (LEARNER) 14 November 2013
The power to levy tax on sale of goods rests with State Government and hence the dealers would be liable for tax in the state in which the goods are physically present at the time of sale. In Short, in the given scenario, the dealer has to register and pay tax in the State of Delhi. When the goods are bought by a registered dealer in Delhi, there would be no question of issuing Form-C for the purchases from the dealer in the State of Delhi.