VAT OR CST

[Asish Kumar Nath]

Dear Expert,

 

We are the proprietor ship company in Kolkata , West Bengal generally engage in Trading Business in all over India.

 

Recently we got an order from a reputed company in Kolkata. Right now they have a project in Andhra Pradesh.They asked us to deliver the material in Andhra Pradesh but the invoice should be in kolkata only.

 

Now my question is what type of sales tax should we charged Vat/Cst? As per my best knowledge whether we raised the invoice in kolkata, the invoice will raise in VAT though we deliver the material at Andhra Pradesh.

 

Please help me out with reference of cst act/rules.

 

Asish Kumar Nath

AI Summary

Proprietorship advised to charge CST for interstate goods delivery to Andhra Pradesh, invoicing in Kolkata under Section 6(2). A proprietorship company in Kolkata sought advice on whether to charge VAT or CST for a transaction involving delivery of goods to Andhra Pradesh, while invoicing a Kolkata-based company. Experts clarified that since the goods are moving from one state to another, CST should be charged under the CST Act, 1956. It was explained that the transaction falls under Section 6(2) involving an E-1 form, where the invoice is raised in Kolkata, but the goods are delivered to Andhra Pradesh. The consensus was that CST at 2% against a C Form is applicable, not VAT.