20 March 2010
WE ARE A DEALER BASED IN DELHI AND ALMOST ALL OUR SALES ARE INTERSTATE SALES. QUITE A FEW OF THE SUPPLIES ARE PICKED UP BY OUR CUSTOMERS FROM OUR FACTORY AND THESE ARE NOT SUPPORTED BY LORRY RECEIPTS. WE WOULD LIKE A CLARIFICATION AS TO WHETHER THESE SALES THOUGH SUPPORTED BY FORM C, WILL BE CLASSIFIED AS A NON INTERSTATE SALES AND TAXED ACCORDINGLY?
20 March 2010
An inter state sale takes place only if the delivery of the goods takes place in a state other than the state where the sale originates from. Under the Sale of Goods Act 1930 a sale is complete only when the terms of sale have been fulfilled, if in your case delivery is the criterea for completion of the sale transaction then it becomes a local sale and CST will not apply.
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