QURERY ABOUT LEVY OF TAX

[Guest]

hello.sir...... i have an query about cst. mr.A(delhi) goods purchased from mr.B(U.P) with 'c' form. and stock transfer to its branch in HARANA. but haryana branch fail to give form 'f' to mr.A. NOW officer of mr.A said that u should deposit tax as per vat rate. now issue is that plz suggest we should deposit tax or not and if deposit then how can we calculate tax amount and in which amount because we r not doing any sale and there is no transection in between of mr. a and brach. as per cst act 1956 and vat act tax shall be charged on amount payable but in this case there is no sale.... plz tell.......... regard amit bhardwaj 7428296061
 

[YAGAY andSUN]

Dear Amit,

In case, F form is not submitted, then, tax under CST Act, 1956 read with respective State's VAT Laws would be applicable. Tax would be payable as per the classification of goods i.e. under which taxable schedule of the VAT Act it falls on the taxable value which is charged on the Invoice.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Interstate tax liability arises when prescribed forms are absent, making invoice value taxable under CST and state VAT. Where a branch fails to provide F form for goods initially covered by a C form, tax under the Central Sales Tax Act read with the receiving State's VAT law becomes payable. Tax is levied on the invoice taxable value according to the VAT schedule classification of the goods; computation follows the applicable VAT rate and is charged on the invoice/assessed taxable value even in absence of a sale between seller and branch.