Applicability of cst or vat

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Pooja Sharma (Querist)
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22 June 2013 HI,
I have imported goods from iran.
my client is in chennai so,i got the shipment at chennai port and sold the goods in chennai.i have also paid custom duty to chennai customs.
ultimately i want c form from chennai party but chennai vat authority is denying to issue c form as the are saying it is not the case of CST sales.
please guide me for the action

CA. C V SURYAM

CA. C V SURYAM (Expert)
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23 June 2013 You are located in another State other than Tamilnadu, this is what I could perceive from query. As the transaction does not fall u/s 3 of CST Act, it cannot be treated as inter-state sale (CST Sale). In such case issue of C form by your Chennai based customer does not arise. Since there is a sale after import within Tamilnadu by you, you need to pay local VAT thereon for which you need to register thereat as a VAT dealer. To avoid VAT legally, you must have done High-Sea Sales u/s.5(2) of CST Act.

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