Inter state purchase & subsequent sales as local sales

Mahavat 1073 views 3 replies

Dear Freinds,

I am seeking your views and pinion on above subject:

I am a mumbai based buyer & i want to sale goods to my mumbai based customer (Local Sales with VAT)

I am buying material from Andra pradesh (under CST ; & issuing C form to my Supplier).

I don;t want to take delivery of goods hence decided to deliver goods to my customer in mumbai.

In short i am purchaseing goods under CST and selling goods as local sales.

Is this process is good ?,  What is technical problem may be. ?

Many thanks in advance for right process in short, but judgemental basis.

Best ragard

Sharma.

 

 

Replies (3)

The process is absolutely correct and perfect ...

There is nothing wrong in it ......

Go ahead ...

 

It is a common business practice to avoid the extra freight charges

  You should ask your AP supplier to deliver to your customer and also issue an E1 form.Your customer has to issue a 'C' form to you. These formalities have to be followed........MJK

Dear Manoj,

You will not be able to take credit / set-off the tax paid under CST against the VAT liability for sale of the goods.

Regards

 


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