Whether cst or vat

VAT (Legacy) 1210 views 3 replies

CA D Santosh Kumar Patro

Asst. Manager Finance & Controlling

88 Points Posted on 31 March 2012

Dear Colleagues

As far as my understanding if goods are moving from one state to other state then CST will attract even the invoice is raised from same state and if it is in the other way i.e. within the state then VAT/Local sales tax will attract.

In this context my doubt is we are register with sales tax authority tamilndu as Chennai is our register office and all invoices are rasing from here, but we are having branches across the india. now we want to sales an old vehcle which is situated in Mumbai and it selling to a Mumbai employee. Hence there is no movement of goods from one state to other. So VAT will attract and which should go to Maharasthra Govt. but as we are not register with Maharasthra Govt. and invoice is raisng from chennai address; which tax will attract ?

If VAT then to how it should? Maharasthra then how will remitte as we not registered with that Govt. and for only sale of scrap it is not preactical?

Replies (3)

Kolluru Krishna Murty

Partner

315 Points Posted on 09 April 2012

Since the sale tooh place in Maharashtra,it is Maha VAT whis is applicable for this transaction.

You should have registration in Maha and perhaps you may fall in the threshold limit of sale of exemption once you are registered in Maha.

This should be applicable in all the states.

kkm

Subramanya

in practice

109 Points Posted on 09 April 2012

Dear Mr Santosh,

Basically VAT/CST is charged for "goods" only....By the descripttion dat u ve given(now we want to sales an old vehcle), i think thr is no question of VAT/CST since the same is meant for ur personal use(i.e Asset) and not meant for sale(not a Good)...So Neither CST Nor VAT is applicable to u....