Interstate sale of goods

    Mr Ajit,

   Most of the electronic goods are chargeable with 4% VAT in UP.These are the various ways you may sell them.

  1. You can appoint dealers or distributors in UP and other states.While importing ,on the way itself ,i.e.before taking delivery, you can make sale in the course of import directly to your agents without any VAT. This should be bulk sale without splitting the consignment.

2. If that is not always possible,you may receive the consignments and make local and interstate sales either directly to the consumers,or to your dealers. Locally,you will sell to your dealers at a price by charging VAT. The distributors will add their profit and sell again with VAT.But, they can take credit of the VAT collected by you. So the end consumer will pay little more tax than when you are directly selling to them.

3. Interstate sales can be made to your dealers @ 2% VAT against 'C' form or @ 4% w/o 'C' form. Direct interstate sales to the consumers can also be made in the same way. Here tax credit can not be availed on further sales.

4. Stock transfers also can be arranged to your distributors without any CST agaainst 'F' form. 

 I think this answers all your queries.

MJK

I understand it completely, thanks for your reply

Firstly of all, there is no tax rate in UP @ 4%. Total vat rate is 4%+1%(addl.tax)=5%

Secondly pls. check rate of vat on your commodity because on most of electronic items tax is 13.50%

For selling of goods under E-1/E-11 form (sale on consignment before taking delivery), two different states should involve. For localy delivery, you can't send goods without charging of vat and buyer will take input credit so there is no harm to any one.

There is no tax discrimation on the basis of employee. Tax levies only the basis of movement of goods.

Thanks

I am Distributor for LED lighting in karnataka and the company is at delhi, So I wanted to know how the tax will be applied.

Case 1: If I sell the product to any institute in Karnataka directly through the company what will be the tax charged?

Case 2: If I receive thr product and re sell those to institutes under my Enterprise, then what will be the tax charged?