A SOMASUNDARAM (MANAGER (MM)) (37 Points)
21 August 2012If Company "A" which is situated at State of Tamil Nadu is selling a product to Company "B" which is siutated at State of Pondicherry and if company "B" uses the product in State of Tamil Nadu, can we issue C-Form considering that there is inter state sale transaction. My point is whether one has to see the consigee address or usage point in case of issuance of C-Form when sale transaction is taking place between two states.
A.Somasundaram
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 21 August 2012
Physical movment and delivery of goods is important for deciding whehter it is interstate or intrastate transation. Movement and delivery is between consignor and consignee. Post delivery what consignee does with the goods is irrelevant.
Regards
Dayananda
A SOMASUNDARAM
(MANAGER (MM))
(37 Points)
Replied 21 August 2012
Thank you for your prompt response.
I am also of the same view expressed by you.
In the instant case, there is physical movement of goods between consignor and consignee.
The problem here is consignee makes all transaction (Purchase / payment ) at state of Pondicherry , but uses the goods in State of Tamil Nadu from which the products have been sold. There are lot of interpretations in my organisation that we should see only the usage point and not consignee address. My worry is whether sales tax department will interfere in the matter or not?.
However, we transport the material for use from state of pondicherry to Tamil nadu through internal gate pass issued by my organisation which is sheerly meant for internal use only.
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 21 August 2012
Point of delivery is important. If It is delviery at pondicherry and subsequestly moved by buyer to tamilnadu than it is interstate transaction. If It is delivered at tamilnadu and billed as pondicherry than we need to check (There are judgment stating movement and delviery of goods will decided the transation as CST or VAT). But even in that case if the sale is not against C form it should not have impact as far as payment taxes except for change in head. As in case of non c form trasaction rate applicable is local vat rate and also set of input credit against payment of CST is available.
Regards
Dayananda
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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