We have a supplier A inChennai and we have a manufacturing set up in Uttrakhand,
We have also a Job worker B in chennai and we want that our supplier A directly supplies material to Job Worker B.
In that case what would be the Sales Tax i.e. whether CST or VAT ?
Please advice.
Debate on Tax Classification: Is a Supplier to Manufacturer Transaction in Chennai a Local or Interstate Sale? A discussion on a forum addresses whether a transaction involving a supplier in Chennai, a job worker also in Chennai, and a manufacturing setup in Uttarakhand constitutes a local or central sale for tax purposes. One participant argues it is an interstate sale due to the 'Bill to Ship to' nature of the transaction, requiring Form C. Another suggests it is a local sale if delivery occurs within the state. A third opinion states it is a CST sale if the manufacturer's additional business is not declared in Chennai, as the ultimate sale is in Uttarakhand. (AI Summary)