Arjun Khanna (Consultancy) (29 Points)
17 March 2010ABC Ltd. (Rajasthan) sold goods to XYZ Ltd. (Delhi) and levied a CST U/S 3(a) of CST Act, 1956.
XYZ Ltd. (Delhi) sold same goods without any value add, to PQR Ltd. (West Bengal). The sale price (including CST) of the goods are same as that charged by ABC Ltd.
Now, the question is whether XYZ Ltd. is required to pay additional CST and pass on the same to PQR Ltd.?
Arjun Khanna
(Consultancy)
(29 Points)
Replied 19 March 2010
Thanks Vikash,
However, the agreement between PQR and XYZ has already been entered into for the supply of various products and this product is a part of total value of agreement, on which XYZ is not earning anything. In short, for this particular product, XYZ is working in the capacity of a trader but without margin.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
