tax payment and validity of transaction

[Guest]

dear sir,

we are based out of gujarat having VAT  registration for gujarat region only and also having CST registeration.  

i have done recent transaction buying mtrl .from Maharashtra and also sold in Maharastra without bringing the material to gujarat., i am not having VAT registration in Maharastra.  is this valid transaction ??  if yes what taxes will come in picture in both buying and selling.

can i show Nil taxes in my sales bill .

[Surender Gupta]

As per my limited knowledge of VAT laws, no state can levy sales tax / VAT on transaction not occurred to related to the the concerned state.

In your example, as a layman, I would say the transaction is not taxable in Gujarat at all. But, what the document / proof you have to prove the same? Was it a cash purchase, or delivery to a place located within Maharashtra etc. etc. which you may need to answer to address the issues that may arise for determination of the nature of transaction.
 

[vasanthi siva]

Dear Sir,

We are doing  exempted sales (CT3 forms)  labour sales and local vat sales (5 percent ) and Interstate (cst 2 percent ) sales.  can you please explain us how to calculate  ITC and how to arrive reversal of credit. Please explain us.

Thanks

vasanthi

AI Summary

Place of supply governs VAT liability; intra state sales taxed by state of delivery and require documentary proof. Place of supply and delivery determine which state may levy VAT/CST: when goods are bought and sold entirely within another state without entering the dealer's home state, that other state is the relevant taxing jurisdiction, and documentary proof of delivery is required to treat the transaction as outside the home state's VAT. For mixed supplies, Input Tax Credit entitlement must be apportioned between taxable and exempt supplies and credits reversed to the extent attributable to exempt or non-taxable transactions.