Dear Friends,
Am working in Construction company - Located at Chennai as an Accountant, I Received a Supply Bill Recently. The Supplier was not raised the Vat inthat bill, they mentioned Clearly in Invoice " Sales Tax Exempted Under Sec 5(2) of CST Act 1956" because they import the material ( Air Conditioners ). But we have to raise the invoice to Our Customer with Vat. If is Correct or not.
( Nature of Business : Construct the building and to sell the Customer. )
Kindly give me advice...
To get exemption from VAT in the supplier's bill you should have made a purchase in the course of import i.e. all the shipping documents had to be endorsed to your company and you should have taken deliery by clearing from custom warehouse.Otherwise any sale by dealer of imported goods also is liable for VAT...mjk
The High Seas Sale by transfer of documents of title to goods is covered by section 5(2) of the CST Act, 1956 and is exempt from CST but all subsequent sales are taxable. Hence, you need to collect VAT/CST as the case may be on subsequent sales.
CAclubindia
