We are a just new ly formed Pvt comp with no turnover as yet. In a first once-of transaction some equipment has to be purchased by us interstate and then sold to another registered dealer party who also is inter state. Since we are not registered we have to pay 15% CST. We wish to keep our source of material confidential if we can,to the Buying party. Can someone please advise us on the following-
1) Do we have to compulsory register with VAT and CST, although we do not have any turnover yet.
2) If not , then by paying 15% CST, we will be increasing the price to the new buyer by that amount- can he claim it as a input credit- if so how ? and what will be our declaration?
3) Can we ship directly to the new buyer from our purchaser and thus take his C form at 2%? We would not be able to keep our source confidential then.
4) please suggest the best option to us in the above scenario.
Grateful for help and advice.
Mehta
CAclubindia
