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Interstate excise consignee

Sunil Tripathi (Others) (31 Points)

01 November 2012

Hello ,

company abc in maharashtra purchased material from gujrat and the consignee party xyz is in maharashtra

example :

bill to party : abc , maharashtra

consignee : xyz , maharashtra

my query is

who will be required to give the C form and how 'abc' completes the transaction ( how invoice will be raised against XYZ by ABC )

thank you

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8 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 02 November 2012

as the meterials did not got placed outside the maharastra, it would be sales subjected to local vat, and not under CST

nilesh (Indirect Tax) (82 Points)
Replied 02 November 2012

I think CST would be charged as this is transfer of document,

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 02 November 2012

if goods are not moving in physical form out of state, then CST does not effect.

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nilesh (Indirect Tax) (82 Points)
Replied 02 November 2012

Thanks, but please clarify me on below points,

‘abc’ company is eligible for set-off. ? on the basis of ‘xyz’ invoice.
‘Gujrat’ company, what would be charged to ‘abc’ company, CST or VAT? as the money transaction would be done between ‘abc’ and ‘Gujrat’ company.

Sunil Tripathi (Others) (31 Points)
Replied 02 November 2012

hii all ,

Abc company is not registered under central excise , but duly registered under t TIN VAT AND CST TIN .

Abc will charge vat as actual to xyz . (5 %)

gujrat party will charge cst to abc .

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 02 November 2012

these type of transactions can be executed only by virtue of E-1 coverage under sec 6(2) of CST act 1956, whiere the goods are consgined out of state to buyer, and buyer redirect the goods on way to 3rd party by endorsement of transport documents.

here the caution has to be maintained that the final receipent of goods is unknown to the supplier of 1st atage till the dispatch of goods, and its done by intermediate buyer only after receipt of transport documents and by way of endorsement only.

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in your case movement is as under

goods moved

xyz>abc

bills made

xyz>gujrat>abc

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means goods were never booked or transported to gujrat at all. so CST does not comes in picture.

however if goods are consigned to gujrat and then re routed to abc by way of endorsement of L/R or consignment note, then it was possible.

for details read sec 6(2) of CST act 1956

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