Bill to Karnataka shipto Tamilnadu by a unit in Tamil nadu

[SARAVANAN RENGACHARY]

A manufacturing unit in Tami Nadu raised a invoices on Karnataka buyer and ship to goods to another SEZ unit within Tamil Nadu.  In this scenario, this sale is a CST sale or local sale with in Tamil nadu.  Please reply.

[sirish narasimhabommakanti]

The sale is a local sale, since the title i goods are passed in Tamilnadu

[Dipen Shah]

Applicability of VAT or CST would depnd upon movement of goods on account of sale. In the given case movment of the goods on account of sale strat and complete in the same state. Bill to address has no importance in VAT/CST. Hence in the given case local Tamil Nadu VAT would be applicable.

Further, in Tamilnadu supply to SEZ is also exempt from VAT.

Hope this will clarify your query.

 

Regards

[V K]

Origin & Destination place should not be in same state........

Movement of goods from one state to another state............

 

Regards

vikas kapoor

[YAGAY and SUN]

Since goods have not been moved from one state to another state, hence it will be treated as intrastate movement and supply to SEZ will be exempted from local VAT.

 

[r.rajkumar kumar]

THE SALE IS LOCAL. ACCORDING TO THE CST ACT SALES DEFINED MOVEMENT OF GOODS.

RISING BILL TO IS NOT METERIAL FOR CHARGING TAX. VAT OR CST ONLY MOVEMENT OF GOODS. THE DELIVERY CHALAN. SINCE THE GOODS IS SUPPLIED TO SEZ THE LOCACL TAX IS ALSO EXEMPTED. TKS

AI Summary

Intrastate sale: billing to another state doesn't attract CST; local VAT applies and SEZ supply is VAT exempt.
Sale billed to an out of state buyer but shipped and delivered within Tamil Nadu is an intrastate sale; tax liability follows movement and place of delivery, not the billing address. Therefore CST does not apply, local Tamil Nadu VAT governs the transaction, and supply to an SEZ unit in Tamil Nadu is exempt from local VAT.