21 June 2011
We have placed an order to M/s.Auma Enterprises who is the manufacturer of actuator spres. In his quotation he has quoted ED@10.3% and CST@2%against C form.he has requested to prepare the Purchase order on his dealer's name M/s.Techmech India. Now Techmech india has submitted a proforma invoice by quoting vat 14.5% extra instead of CST@2%.Now my question is what is the applicable CST/VST rate in this case.
23 June 2011
Mr Author, Now it depends on where the dealer of the manufacturer is situated. The manufacturer may be out side state and therefore he quotes sales @2% cst aginst 'C' forms.He might have appointed a local distributor,who is in your own state, and so,he quotes local tax rates. In order to solve this problem you ask M/s Techmech India to do the sale in transit i.e.'E1' sale,in which case you can save the tax(2% on purchases)only.