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

Place of supply determines VAT vs CST: tax follows the consignee/delivery address on order and invoice. Whether VAT rather than CST is chargeable depends on the consignee/delivery address shown in the purchase order and invoice: if they identify the Hyderabad branch as consignee the sale is inter state and CST applies; if they show Chennai as consignee the supplier may correctly levy VAT in Tamil Nadu.