TaxTMI 
TaxTMI 
BUYER & SELLER BOTH ARE IN HARYANA STATE, BUT THE MATERIAL IS BEING CONSIGNED TO MAHARASHTRA STATE. WE HAVE RAISED THE INVOICE UNDER E-1 SALE AGAINST C-FORM DUE . NOW BUYER IS DENYING TO ISSUE C-FORM, SAYING THAT INVOICE SHOULD HAVE BEEN RAISED ON VAT, AS THE BOTH ( SELLER & BUYER) ARE IN THE SAME STATE. ABOUT DELIVERY OF THE MATERIAL HE SAYS THAT THE DELIVERY CAN BE TAKEN ANY WHERE. IT DOES NOT ATTRACT THE SALES TAX. PLS CLARIFY , WHETHER CST OR VAT TOBE CHARGED.
Applicability of CST or VAT
19 May 2009 
2 Replies 
1911 Views Asked by
Inter-state movement permits buyer to issue C-form and attract CST under applicable rules; refusal is incorrect.
Where goods are moved from one state to another and the buyer is a registered dealer, the buyer may issue a C-form, enabling application of CST; a post sale refusal to issue the form is inconsistent with that position. Alternatively, one advisory reply indicates that neither CST nor VAT need be charged on the presented facts and that the seller may charge entry tax if goods are not exempt in the destination state. (AI Summary)
Where goods are moved from one state to another and the buyer is a registered dealer, the buyer may issue a C-form, enabling application of CST; a post sale refusal to issue the form is inconsistent with that position. Alternatively, one advisory reply indicates that neither CST nor VAT need be charged on the presented facts and that the seller may charge entry tax if goods are not exempt in the destination state. (AI Summary)