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Reg cst to be charged

Mukeshh Agarwal (E-solutions) (129 Points)

07 November 2011

State - West Bengal

Query - Reg CST rate & Billing procedure

Commodity - Sand, stone chips, boulders and grit (P.S. VAT Rate 4% in local sale)

Hi !

I want to issue a Sale Invoice to party in BIHAR. I am located in WEST BENGAL. 1st part will be sale of material. 2nd part is I also have to charge carrying of materials to party address.

First query:

Should i charge CST on Materials only or should it be on Materials + Carrying. And will the party deduct TDS on Carrying ?

Second query:

What should be the CST rate ? The party will not issue C Form .

Thanks in advance!

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4 Replies

Deepak Gupta (CA Student) (15927 Points)
Replied 07 November 2011

Originally posted by : Mukeshh Agarwal

State - West Bengal

Query - Reg CST rate & Billing procedure

Commodity - Sand, stone chips, boulders and grit (P.S. VAT Rate 4% in local sale)

Hi !

I want to issue a Sale Invoice to party in BIHAR. I am located in WEST BENGAL. 1st part will be sale of material. 2nd part is I also have to charge carrying of materials to party address.

First query:

Should i charge CST on Materials only or should it be on Materials + Carrying. And will the party deduct TDS on Carrying ?

CST is not payable on outward freight (if charged separately).

The contract of carriage of goods is between the supplier and the transporter. The client is only reimbursing the freight charges to the supplier. There is no contract between client and the transporter. Thus TDS provision is not applicable for the client.

Second query:

What should be the CST rate ? The party will not issue C Form .

It will be same as the VAT rate applicale in Bihar on that item (s)

Thanks in advance!

1 Like

Anupam Bajaj (Student) (111 Points)
Replied 08 November 2011

i am agree wd deepak gupta for first query. Client should not deduct TDS on carrying amount. TDS should deduct by you on carrying amount and paid to transporter. Its yr liability. In second query u should charged 4% on material amount. If party provide u C form than cst should charge 2% by u.

1 Like