One of my clients is purchasing goods from hyderabad and selling the same goods directly to a party situated at Delhi. Pl guide me what would be sales tax (VAT & CST)implications on the said transaction. we are registered dealers in the state of Maharashtra
21 April 2010
As per section 6(2) of the CST Act, subsequent inter-state sale transaction taking place by transfer of document of title to goods, when the goods are in course of movement are exempt. For this purpose the claimant dealer has to obtain Form E-1 from his vendor (if such vendor is first seller, other wise E-II) and 'C' form from the buyer.