We are purchasing from Maharashtra registered dealer (local dealer)& supply to (Sez area) Cummnis (indore) Material will directly goes to Cummins. Wheather C for issued to local party or they will charged us vat 12.5%
01 June 2012
Applicability of sales tax is based on movement of goods. As in your case, goods are being moved from one state to another state, CST will be applicable (i.e., your supplier will charge CST to you). You are supplying to SEZ unit, sales tax is not applicable to the sales made by you. If u are able to convicne your supplier that even the preceeding sale (i.e. sales by your supplier to you) is exempt from Sales Tax if the final sale is to SEZ unit, it would be the best option (though it is a disputed issue). U can go other way also, break the entire transaction, i.e first you purchase paying local VAT (which may be available as input credit) and then sale to SEZ unit situated outside state without charging any CST.
CAclubindia
