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Shiv Shankar Prasad (Querist)
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18 February 2010 we are an advertising agency. we want to bill one of our client in punjab. We are registered Dealer in Delhi. What will be the tax rate? For client this in an advertising expense.Please suggest me.

Thanks.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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18 April 2010 I think your transaction falls under the ambit of works contract.

Now, whether this is a inter-state sales or not, will be determined by applying the ratio of section 3(a) or 3(b) of the CST Act. If inter-state movement of goods are covered by the prov of 3(a)/3(b), this will be an inter-state transaction.

If not, you will have to apply the ratio of section 4 of the CST Act to find out that if it is an intra state sale, which state will collect taxes on the said transaction.