Inter state transaction , act applicable

I am of the opinion that the VAT Act applies only to sales within a State, the following sales shall not be governed by the VAT Act: a) sale in the course of inter-State trade or commerce which shall continue to be liable to tax under the Central Sales Tax Act, 1956; b) sale which takes place outside the State; and c) sales in the course of export or import. I referred the site of Maharastra Government .https://mahavat.gov.in/Mahavat/wherein meaning of sale is clerified under point (24) (“sale” means a sale of goods made within the State for cash or deferred payment or other valuable consideration) So VAT ACt is applicable on intra state transactions only

  Mr Hariom Gupta,

 The dealer is correct in charging 12.5% on the sale of chairs to the branches located in other states.Maharashtra VAT Act is applicable for sales made within that state.When the goods(chairs) cross the Maharashtra borders the CST Act 1956 comes into play. Read sub section 2 of section 8 of CST Act 56 which stipulates that when a sale is not made to a registered dealer full rate of tax payable within the state is chargeable....MJK

Krishnamurty sir,

I am agreeable with you that charging of 12% tax by the dealer is correct as Bank not being registered dealer could not submit declaration on CST. Here , the rate of chair is Rs.9300 each inclusive of all central tax and dealer charging Rs 9300 plus CST/VAT @ 12.5% i.e Rs 1176.50 over and above the cost of chair. Whether branches located at Chhatisgarh State should pay Rs 9300+1176.50 even agreed rate is Rs 9300 inclusive of all central taxes ?

Dear Sir,

                 If Rate of Chair is Rs 9300 each Inclusive all taxes then Supplier can not Charge Extra CST on It.      Please go through your Purchase Order then it will be Clear that CST will be Charged Extra or it will be  included in Cost of Chair.