Sales Tax to be charged in Rejected Material Invoice

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mustafa@nrjasani.biz

Senior Manager Systems

21 Points Posted on 11 March 2011

Dear Sir

We have purchased material in January 2011 in the state of Maharashtra, Billing address for our factory located in Vapi (Gujarat). We made Sales Excise Invoice in March 2011 for rejection of partial material. Can we charge 2% CST in Sales Excise Invoice. Supplier has charged 2% CST in his Invoice against C Form.

Regards

Mustafa Sanchawala

Replies (3)

Pankaj Arora

Learner

3431 Points Posted on 12 March 2011

yes you have to charge CST because you are going to rejection partial material....

chetan

accountant

215 Points Posted on 21 April 2011

Dear

Have you taken cenvat credit. it is excisable commodity?

If you are returning the material no need to make excise invoice. Make the debit note and send it through delivery challan.

U S Sharma

glidor@gmail.com

21670 Points Posted on 21 April 2011

Originally posted by : chetan
	Dear Have you taken cenvat credit. it is excisable commodity? If you are returning the material no need to make excise invoice. Make the debit note and send it through delivery challan.

on debit notes materials can not move one state to another, he is doing right procedure to issue invoice in name of supplier and reversing duty on proportionate ratio mentioning in invoice,

regarding CST, there is two options

1) reject entire lot and return to supplier , without paying any tax , but restricted to do within 90 days

2) reject partial and pay CST @ 2% , receipent will issue C form in this case.