Foreign Buyer consingee is in indai Can sale aginst c form or LOcal vat

[Asked by Guest]

Dear Sir,

Our Buyer is In Europe, Consignee in Chennai, we raise the invoices to Foreign buyer , material dispatch to Consignee In India, Can we sale against C form? can consignee give c form against Cst 2 percent ?

 

Regards,

Hardik

 

[V K]

Dear Hardik

Pls make a note  that in E-1 Sale Consignee does not give the C Form to Manufacturer, In E-1 sale You have to collect the C Form from your  foreign buyer.  Which is not possible.

 

Regards.. Vikas Kapoor

[N Balachandran]

Dear Mr. Hardik,

I presume that, your Foreign Cusotmer don't have establishment / VAT registration in India.  When the customer don't have VAT/ CST  registration, he will not be in position to issue the "C" form.  Your Sale transaction to be treated as Local Sale and No "C" form can be issued by your Customer.

Sale U/s 6(2) b of CST act does not arise here.

 

 

 

To be called export the material has to leave the Indian shores and since the delivery is in India it will be considered as local sale and VAT / CST will be applicable as the case may be. Further, if the local consignee is not registered full sales tax will be applicable as he can not provide C form.

Order placed by buyer based abroad or receipt of amount in Foreign currency does not determine the applicability of Sales Tax.

AI Summary

Local sale characterization governs VAT/CST liability when goods are delivered within India despite a foreign buyer.
When goods are delivered to a consignee in India the transaction is a local sale, so VAT/CST applies; export treatment does not follow merely from a foreign buyer or foreign currency payment. A C Form can only be issued by a buyer authorized under Indian VAT/CST registration, and a foreign principal without Indian registration cannot furnish a valid C Form, nor can an unregistered local consignee obtain concessional form benefits.