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Cst rate applicable

prasad (CA Final Bcom(Taxation) Sr Audit Team Leader ) (71 Points)

11 June 2012

please suggest me appropriate answer

x is my supplier located at mumbai and y is my customer in delhi. i stay in hyd .x will raise invoice to me charging cst.i directed x to supply goods to y.i have to raise an invoice to y .if y is an unregistered dealer then according to which state i have to consider vat rate for weh purpose.

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3 Replies

Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 12 June 2012

Dear Prasad

Had your customer be a registered dealer it would have been an exact section 6(2) sales as per CST ACT,1956

Since your customer is URD you will have to charge the CST RATE . The CST RATE would be the rate that would have been applicable if the sale was made locally i.e if the sale of goods attracts 5% locally then CST @ 5% would be applicable ..

Ok ....