Implication of Sale tax, VAT + CST

[Sudhakar Sinha]

I A is a manufacturer, B is Supplier and C is Purchaser. C inspect the goods manufactured by A at premises of B and then the B transfer the goods to C. A, B, & C are in different state. then kindly explain the implication of Sale tax in this case

Posts / Replies

[Pradeep Khatri]

Dear Sudhakar,

We are afraid that above scenario does not fit under the either sections 3A and 3B of the CST Act, 1956.

It would be treated as simple interstate sale and would not fall under the E-1 Transaction.

Regards

Team YAGAY & SUN

(Management and Indirect Tax Consultants)