My Company is having base of PAN India Franchisee Network. We sale various educational items to those franchisees. the VAT Registration is taken in 3 locations - Maharashtra, Uttarpradesh, West Bengal. From Mumbai materials are being stock transferred to Kolkata & Noida with Road permits. From Noida & Kolkata the enire North & East Franchisees are serviced. Now recently every states in which these educational materials are sold to franchisees, the Sales Tax dept of those states are demanding entry tax on the invoice value.
My question is when we are selling those materials, we are paying CST on the invoice value & again we have to entry tax on highest rates ? If the franchisees would have been registered dealer, then we should have billed them with 2%CST on production of Form "C", but that is also a problem, because these are small franchisees every body can not take VAT/CST Registration.
Can any body help me out?
CAclubindia
