form I transaction

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H R Shivashankar (Querist)
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05 April 2011 sir,

You must be knowing section 8(8) of CST Act1956, which lays down supplier is exempt from CST on supplies to SEZ unit or developers, for which Form I is the prescribe form.

in above said transaction, please clarify me the following:-

Suppose A ltd a supplier from bombay sold goods to B Ltd of Bangalore mentioning on the invoice billing address to B ltd and Delivery address to C ltd a SEZ unit in bangalore,the customer of B Ltd.( As per Purchase Order terms)

the above transaction is against Form I.

in the said transaction, whether B ltd can raise the tax invoice to client C ltd at 0% vat against material delivered at site by A ltd of Bombay mentioning as this transaction is against I form or if not how B Ltd can exemption from VAT/CST

please clarify with applicable sections if possible

thanking you

regards

Hitender Gaur

Hitender Gaur (Expert)
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14 April 2011 A should make billing for 'B' against @ 2% CST ag. Form 'C' otherwise Full rate of tax in MVAT on item.(
B Ltd. should raise invoice ag. form "I" to 'C'.

Although A Ltd. delivered the material direclty to 'C', B Ltd. is not covered under Form 'I' as per your detail, so billing ag. form 'I' to B Ltd. is legally wrong.

In CST Input credit is not allowed.