Tax treatment for transit halts due to unforeseen conditions

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ASHISH (Querist)
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25 February 2011 Some material was despatched from "A" state to "B" state on inter-state sale basis. However, due to non-avaiability of clear passage enroute, the material was brought inside the premises of another establishment in "C" state and halted there for 3-4 months which was not pre-planned. Now, the material is to be moved again further to "B" state. What will be the tax treatment?

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
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26 February 2011 Dear Ashish,
In the said Case there are two movements. One is From State A to State C and Second is from C To B irrespective of any intention. It would be Charged @ 2% CST (Interstate Concessional Rate) for each movement.