Vat or cst

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One Registered Vat  Dealer Sold Gold Jewellery from his showroom in Kolkata West Bengal,  to A person  who's address in Tax Invoice is Mumbai. Should he Charge Vat or CST ?  Is it Sale within State or Inter State Sale 

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For determining whether a sale is inter-state or intra-state, section 3 of CST act, 1956 needs to be referred..which states that a sale shall be deemed to be an inter-state if it ocassions the movement of goods from one state to another... Keeping in view thee aforesaid provision, if in your case, the buyer had come to kolkata and taken the delivery himself therein, then it shall be intra-state(I.e.local sale).... However, if you have sent the goods to his address, then it shall be inter-state sales.... In the second case, the transit risk must bee assumed by seller only....

Thank you for the clear clarification.

Correct.  To determine any sale (whether it is local sale or interestate) situs of sale is very important and second thing is movement of goods and third is taking delivery. (u/s 3 of CST Act. 1956)

 

If the party comes from other state, and takes delivery and arranges vehicle on his own then it is local sale.  If the same party, after taking delivery asks the supplier to send the materiasl to his Mumbai address, then it is interstate sales then the question of c form and all arise.


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