Vat or cst

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Vimal Jain

Manager

21 Points Posted on 04 April 2013

Party 1:ABC Manufacturer of paper is based in Tamil Nadu, he distributes through the distributors

Party 2: Distributor DEF Hyd is based in Hyderabad

Party 3:GHI Hyd Consignee Customer is based in Hyderabad

Party 4: JKL Printer Tamil Nadu is the printer where material is being

delivered for printing.

Chain of Events.

* GHI HYD places an order for supply of board to DEF Hyd

with delivery address as JKL Printer in Tamil Nadu and GHI Hyd as

consignee.

* DEF Hyd places this order to the Manufacturer ABC Tamil Nadu,

with Consignee as GHI Hyd and Delivery to JKL Printers Tamil Nadu.

* ABC raises an excise invoice with TN VAT being charged with

DEF Hyd as Dealer, GHI as Consignee and JKL Printers as Delivery

Address.

* Material is delivered based on the above invoice to JKL Printers.

* DEF Hyd needs to raise a commercial tax invoice on GHI

Hyd (Need clarity over here as to what type of Invoice it should be VAT/CST)

Replies (2)

Abhinay Kesanapalli

Articles asst.

74 Points Posted on 05 April 2013

In your first case consignee is DEF Hyd(who is receiving the goods) but GHI Hyd is not consignee, he is buyer of the goods.

In all chain of events, Questions are wrong.

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 07 April 2013

Mr Vimal Jain,

Well, you have brought out an interesting chain of sales.DEF Hyd and ABC are in different states,so, ABC can not charge TN VAT in his invoice. He should charge CST only against 'C' form @ 2% only.DEF Hyd and GHI Hyd have to raise CST invoices without charging any CST. The invoices raised are from ABC to DEF Hyd,from DEF Hyd to GHI Hyd,and finally from GHI Hyd to JKL printers TN."'C ' forms will be issued in the reverse order i.e 4th to 3rd to 2nd and to 1st. 1st will issue E1 to 2nd and 2nd will issue E2 to 3rd.If all these form issuing can happen only this sale and delivery will be valid. If not,it will become a local sale between ABC and JKL,with TN VAT........mjk