how to conclude the sales

[Guest]

Dear All,

We are EPC Contractor  only  registered with Sales tax dept  of Tamilnadu.

We are in contract with Cement Mfg registered at karnataka and supplying materials from allover India.

We do have some supplier from Karnataka.

Material is being transported from and received  at karnataka itself .

Please explain how to conclude the sales.

Shall I allow my supplier  to charge/ Collect  VAT @14.5%   to me.

How can I charge Tax on my customer.

Please clarify

Thanks in advance.

Ravikumar.

94861 80815

[YAGAY andSUN]

You may opt for transit sale.  This way you need not to charge the tax.

AI Summary

Transit sale can permit an EPC contractor to avoid charging VAT on goods transported and received outside its registered state. An EPC contractor registered in Tamil Nadu supplies materials to a Karnataka-registered cement manufacturer with goods transported and received in Karnataka; the contractor asks whether Karnataka suppliers should charge VAT to it and how it should charge its customer. The forum reply recommends treating the transactions as a transit sale, enabling avoidance of charging VAT on those inter state movements when properly documented.