My client's POB is in Maharashtra, he received work order from Gujarat..... So he issued Invoice by charging CST @ 2% against C Form. But the goods don't move from Mahrashtra, instead my client has a vendor in Gujarat who does the work for him and issues bill to my client without any taxes. So is the charging of 2% is proper against C Form, because goods didn't move outside the state?
2 Replies
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 27 May 2011
If you refer definition under CST Act for "interstate sale" (Sec 3 of CST Act) it is very clear that to constitute a interestate sale there should be movment of goods from one state to another.
Apparently it looks like charges CST is not correct for the refered trasanction.
Regards
Dayananda
RAJU
(LEARNER)
(1089 Points)
Replied 27 May 2011
True.
In this scenario, you may have to register in the state of Gujarat and pay applicable taxes in that State.
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