Invoice Address

[PONNADA B K RAVIKUMAR]

Dear Sir, We bought Fixed Asset from the Supplier in Chennai for our Hyderabad Branch, Q.1 Now the supplier is charged Vat @ 4% , instead of Cst is it ok? Q.2 The Buyer Address in the bill was Chennai Address, where as it is suppose to be Hyderbad Address Branch address, can we accept the bill or can we ask for revised bill with regard to these two queries.

[Ramanujam Varadarajan]

It depends on the purchase order placed by you.  If it clearly conveys that the assets should be delivered to Hyderabad office, the billing should be made in that way and CST is chargeable.

On the other hand, if the P.O. and invoice indicates the consignee address as Chennai, the supplier is right in levying VAT in Tamil Nadu.

 

AI Summary

Supplier Billing Dispute: VAT Charged Instead of CST Due to Incorrect Address on Invoice for Fixed Asset Purchase A query was raised regarding a billing issue for a fixed asset purchase from a supplier in Chennai for a branch in Hyderabad. The supplier charged VAT at 4% instead of CST, and the invoice listed the Chennai address instead of the Hyderabad branch. The response indicated that if the purchase order specified delivery to Hyderabad, the billing should reflect that and CST should apply. However, if the purchase order and invoice list Chennai as the consignee address, then the supplier correctly charged VAT applicable in Tamil Nadu.