Movement of goods - Applicability of CST or VAT

[madhavvan n]

Company 'A' located in Maharashtra having VAT registration in Maharashtra has placed an order for goods with Delhi vendor for delivery at Delhi the goods are delivered at Delhi to a dealer of company 'A' who will keep the goods with him owner ship rests with Company 'A'. Whether the Delhi vendor will charge CST or local Delhi VAT on this sale by him to the Company 'A' located in Maharashtra. is this a local sale or CST sale. Thereafter Company 'A' wants to move the goods to Mumbai ( in Maharashtra) to its warehouse how can it move the goods through which document.

[Surender Gupta]

The issue a controversial one. It is the movement of goods which governs the applicability of local VAT (ST) or CST. From the query it appears that movement of goods is within the state of Delhi. The the movement of goods and occasion of movement of goods both are in Delhi and predetermined, local VAT may be applicable. However, to my mind contrary views are possible, a detailed brainstorming is required for this issue. I like you to put your view and understanding on the issue for the benefit of members at large.

AI Summary

Maharashtra Company Faces VAT vs. CST Dilemma for Delhi Goods Delivery; Debate on Tax Implications Continues. A company in Maharashtra with VAT registration placed an order with a vendor in Delhi for goods to be delivered to a dealer in Delhi, while the ownership remains with the Maharashtra company. The query concerns whether the Delhi vendor should charge CST or local Delhi VAT. The response suggests that since the movement of goods occurs within Delhi, local VAT might apply. However, the issue is controversial, and differing opinions exist, indicating a need for further discussion to clarify the tax implications and appropriate documentation for moving goods to Maharashtra.