Vat on interstate trading

Others 4337 views 5 replies

Sam Anthony

General Partner

25 Points Joined May 2012

Hello,

I'm currently running a used equipment business and have a warehouse (friend's warehouse) in Pune. I'm now getting orders from other parts of Maharashtra (Nagpur, Nashik & Pune) for the equipment I have sourced in Pune (there is no inward memo since most equipments are sourced from individuals who upgrade).

When I do a sale in Maharashtra, my invoice is raised from Mohali (Punjab), what VAT rate should be applicable? I do not have a registered office in Maharashtra, just in Mohali.

5% as in Punjab VAT

12.5% as in MahaVAT

To clarify a bit, my friend will be a dropshipper in ecommerce terms.

Please clarify.

- Sam A

Replies (5)

Akash Jain

CA Final Student

261 Points Joined August 2010

Dear Sam,

Inquiring your query you will have to charge CST and not VAT as it is a interstate sale.The rate of charge(CST) will depend on the type of equipment you are selling and the type of sale(Form C etc).

Regards.

Pradeep Kumar Banduni

Commercial

190 Points Joined January 2011

Dear Mr.SAM,

If interstate sale is happening without C Form then CST Rate will be equal to State VAT Rate of the seller.

Thanks

Pradeep Kumar Banduni

Sam Anthony

General Partner

25 Points Joined May 2012

CST Rate will be equal to State VAT Rate of the seller. >> Does this mean that the dropshipper and the buyer can be in the same state and I still charge CST equivalent to Punjab VAT? Thanks for your response.

Pradeep Kumar Banduni

Commercial

190 Points Joined January 2011

If you are raising sale invoice from Punjab to Maharashtra without C form then full CST rate will be charged by you which will be full VAT rate of the punjab state and if you are registered in Punjab state and doing billing to Maharashtra dealer who is also registered in Maharashtra then you can make billing with 2% tax charges against Form-C. it is depend to you and your dealer status.

Thanks

Pradeep Kumar Banduni

Anand Gurjar

Accountant

1 Points Joined September 2015

Hello

I purchasing one equipment from UK and by air it is coming to Delhi port. My customer is located in VADODARA,gujarat. Now will VAt 5% applicable? when i invoice to customer? My company is registered in DELHI. CST 4% is applicable?