Vat query

Dear Mr Nitin,

This is not a case of within state sale so dose not attreact vat liability.

It is a pure case of Central Sels tax.

ABC ltd and XYZ ltd both have to be a registered dealer under CST.

Here Form - C will be given by XYZ(Karnataka Br.) to ABC when goods will be despatched via Form E1

It not vat liability cst if goods transafer branch 2 % paid inter state form E1

Both ABC & XYZ need to get registered under CST act 1952 under section 6 regarding the existence of branch in cst certificate. transfer between the branches shell be free of tax (no cst 2% or any other rate of tax applicable). form F shall be issued by the receiving branch form E1 arises only when the goods in transit is delivered to other party as per customer requirements

Thanx for the reply How can Karnataka branch (xyz ltd) issue form E1. Its not a transit sale. One consultant said :- Xyz has head office in delhi, when material dispatched by abc, invoice should contain billing to headoffice and shipping to karnataka Headoffice will issue Form c and branch will issue Form F. Is this correct ?

Thanx for the reply How can Karnataka branch (xyz ltd) issue form E1. Its not a transit sale. One consultant said :- Xyz has head office in delhi, when material dispatched by abc, invoice should contain billing to headoffice and shipping to karnataka Headoffice will issue Form c and branch will issue Form F. Is this correct ?

When a stock transfer/consignment sale is made b/w the state the receiving state should give form f as per section 6a of cst act of 1952. existance of form c will not arise at all as per sec 8 (3) of cst act of 1952. For more details & clarity contact me to my mail id sukeshnsuki @ gmail.com