02 November 2013
WE ARE STAINLESS STEEL UTENSILS MANUFACTURER IN GUJARAT – WHERE CST SALES IS LIABLE @ 0% agst ‘C’ Form - VIDE NOTIFICATION . RAW MATERIAL PURCHASE IS LIABLE AT 1% VAT. 1% CREDIT IS REDUCED IN VAT RETURN . ( 2% cst sales agst c’form as earlier to notification – 1% input tax credit) NOW WE HAVE RECEIVED ORDER AT PATNA-BIHAR MY QUESTION IS [1] WHETHER TO SEND GOODS FROM AHMEDABAD FACTORY TO PATNA PARTY DIRECTLY – IS VIABLE - agst ‘C’ Form ? OR [2] TO OPEN BRANCH AT PATNA-BIHAR AND SEND GOODS FROM HO TO BRANCH AGAINST ‘F’ FORM - IS VIABLE ( AND THEN FROM BRANCH TO PARTY AGAINST LOCAT TAX IN PATNA)
[3] CAN WE SEND GOODS FROM HO TO BRANCH AGAINST ‘C’ FORM instead of ‘F’ form ?
03 November 2013
As per the details given by you the options give the following effects : 1)By directly sending against form 'C' you will pay (2-1)=1% vat in returns. 2)By sending against F form there will be 1% reversal of ITC already claimed and full vat in Bihar,and makes it costlier. 3) It is no better choice,tax is same as sl.no 1 but Bihar vat in full.So,option 1 is better......mjk
CAclubindia
