Clarification Please

[Asked by Guest]

Purchased goods from Maharastra mentioning buyer as me and consignee as my customer.

Delivered the goods to my customer along with my Tax invoice and EDGP from my supplier.

My customer can avail Modvat and transaction is E-1.

Can I generate Tax Invoice by charging VAT in place of CST.

Our sales tax dept insist to generate VAT .

Will it be a illegal transaction.

[YAGAY and SUN]

You need not to charge VAT under Odisha VAT Act. Please refer Section 3 (a) of the CST Act read with Section 6(2).

[Ganeshan Kalyani]

Sir, the location of your buyer is not mentioned in your query. I assume it is in the same state of yours and therefore the authority is asking to charge VAT.

The nature of transaction should be explained with documentary evidence to the satisfaction of the officer. The transaction is sale in transit provided you have issued Form C to your supplier and collected Form E-I from your customer. Thanks.

AI Summary

Sale in transit: tax treatment depends on documentary proof; interstate documentation can negate local VAT liability.
Whether VAT must be charged depends on whether the supply is a sale in transit supported by prescribed interstate documentation: issuance of Form C to the supplier and collection of Form E-1 from the consignee. If those documents establish an interstate sale in transit, VAT need not be charged; absent such documentary proof or if the buyer is in the same State, local VAT may be exigible.