Applicability of cst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2013 The buyer and seller are within the state of TamilNadu. The buyer orders to deliver the material at Gujarat state. The seller (in TamilNadu) raises a sale invoice on the buyer (in TamilNadu) with shipping address of Gujarat. Whether the seller should charge VAT because the buyer is in the same state (OR)should charge CST because the goods are moved outside the state of TamilNadu. Please reply.

Suresh Mittal

Suresh Mittal (Expert)
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18 May 2013 This is central sales u/s 3(a) of the CST Act as it necessiated the movement of goods from one state to another. In this case CST is to be charged and the buyer can avail the benefit of C Form. Further the sale by buyer to party(if it is another dealer)in Gujarat can be against made by transferring the title during movement without levying any tax u/s 6.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2013 In the above query, the buyer and shipper are not the same party. In such a case, how to handle the tax chargeability in the invoice.
Can we still charge CST on the buyer who is in TamilNadu while the shipper is in Gujarat/
Please clarify

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Suresh Mittal

Suresh Mittal (Expert)
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19 May 2013 If buyer and consignee are different even in that case it is central sales.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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19 May 2013 This is a local sale within TN as the seller and the first buyer are within TN ans no facility of sale by transfer of document is permisible. The buyer in this transaction has to raise his documnts for shifting the goods to the shipping centre.
mjk

Suresh Mittal

Suresh Mittal (Expert)
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20 May 2013 This is central sales as per Section3(a) as there is a precondition/instruction of the buyer to despatch the goods out of state, so the sale necessiated the movement of goods, it is a central sales.