28 February 2014
I have firm which has 2 branches one in Maharashtra and other in Haryana. We import goods at Mumbai port and our supplies are to all over India. We also have warehouse near Mumbai. Maharashtra has 5% VAT and Haryana is tax free for the item in question.
My questions.
1. Can we raise invoice for the party in Maharashtra from the firm in Haryana and supply goods? What will be tax implications in Maharashtra and Haryana?
2. Can we directly transport or transfer goods to other parts of India from Maharashtra without taking goods to Haryana and raise local sale invoice from Haryana?
3. Do we need to pay 2% CST on sales generated from Haryana branch for goods supplied to other parts of India under CST act as Haryana is tax free?
4.What will be tax implications if party doesn't provides C or F forms to Haryana branch?
Please give justification with relevant provisions and departmental certification.
28 February 2014
Since your entire sales except sales in Maharashtra is inter State Sales CST law is applicable for inter state sales and you have to charge CST including sale in Haryana. For sales in Maharashtra you hve to charge VAT and you can directly despatch the goods from Mumbai to other states.
CAclubindia
