24 May 2014
Dear Friends, One of our client is executing works contract. He runs his business in Karnataka under Karnataka TIN. He has purchased some materials from Mumbai using Karnataka tin (CST). and started his work in Mumbai itself. The goods has not entered Karnataka itself . So, please guide me where the VAT has to be paid . Is it in Karnataka or Maharastra.
24 May 2014
As you have purchased the material in Mumbai and used them in a contract work there itself,the taxable turnover relates to Maharashtra VAT,and not Karnataka VAT.For this purpose a registration has to be done,in VAT office of the area in which the work is done in Mumbai and all formalities to be followed as a registered dealer of MH......mjk
CAclubindia
