Vat on interstate trading

Sam Anthony (General Partner) (25 Points)

10 May 2012  


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