Inter state purchase & sale

Dear Expert

I am registered dealer in mumbai purchasing  material from supplier from Hydrabad against the C Form, by paying 2 % CST, with the predefined instruction to my hydrabad dealer to delivery material directly to my customer in mumbai.

Question.

1. Whether this transaction covered under 6(2) ?

2. How i will raised my invoice to my Cusotmer how is also in mumbai - Local VAT, CST (what %) or both.?

3. What are other compliances.?

Many thanks

 

 

 

 

Replies (1)

Answer 1 = It is not a 6(2) transaction as in a 6(2) transaction there are 3 states involved .

Answer 2 = You will levy VAT on the goods sold by you to your mumbai customer .

 You will have to issue C FORM to your Hyderabad supplier 

 

Ok ...

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