Shivish Verma (C A) (376 Points)
11 June 2013Sir,
one of our client registered in maharashtra vat imports the goods from china and sale in india. they want to sale the goods locally on DDP (Delivered Duty paid) basis.
in that case all the cost related to transportation and custom duty will be borne by our client i.e. seller.
Is Maharashtra vat applicable on DDP sale. please reply by giving reference to Section Number also
Its urgent
CA Viswanadh
(Chartered Accountant)
(190 Points)
Replied 11 June 2013
Delivered Duty Paid or DDP means the exporter himself pays customs duties and completes customs formalities. Your client being importer will not pay customs duty if he imported on DDP basis. The exporter who sold to your client will pay Basic Customs duty,CVD and SAD.There is not VAT on import. When your client receives goods and sells in Maharastra to a local customer then VAT is attracted. Your client will pay customs duties if he imported on FOB or C&F basis but not importing on DDp basis
Shivish Verma
(C A)
(376 Points)
Replied 12 June 2013
Thanks Vishwanath Ji
One customer says to my client that import the goods on his behalf and sells the goods to him as an agent.
Whether this arrangement is possible.
In that case, whether Maharashtra vat applicable or not.
Which section of Maharashtra Vat Tax Act deals with this sale arrangement.
Please reply with reference to specific section of Maharashtra Vat Act
Thanks
CA Viswanadh
(Chartered Accountant)
(190 Points)
Replied 12 June 2013
I am not aware of specific sections of MVAT law,but can clearly say that VAT is applicable only on sale within state. The import transaction can never be subjected to VAT. The subsequent sale within the state of Maharashtra will attract VAT. Therefore your client when he stocks the imported goods in Maharastra and sells them in Maharashtra, he will have to pay VAT.
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