Required information, VAT + CST

[KALPESH SHAH]

Dear Sir,

We have a Registered company of gold jerellery and we are manufacturer at Junagadh ( Gujarat ), and our exhibition at first Delhi - Raipur - Kolkatha - Bhubaneswar and we are come there to caring a gold jewellery not for sale with us so we would like to know what was the ligal prosiger

Hope Earliest Response

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Please mention query to the point as wanted by you.

[YAGAY AND SUN]

Dear Shah,

First of all make an application by stating all material facts and submit it to jurisdictional Central Excise Department and jurisdictional Gujarat VAT Department for seeking their permission. After getting the permission please take an appropriate insurance cover for transit period. Prepare a challan for the jewellary you want to remove for exhibition purpose and after the purpose is fulfilled bring back the jewellary to your premises and close the challan. Also closing the challan provide the information to the respective Departments.

Regards

YAGAY and SUN

[Ganeshan Kalyani]

Sir, with due respect to Yagay and Sun, my view is VAT is applicable only when sale takes place. Here in your case sale has not happened hence no sales tax is applicable. Further in my view no information or approval is required from VAT authority for taking goods out of factory and after exhibition taking back to facory. Thanks.

[Ganeshan Kalyani]

Sir, in central excise the permission is required but not in VAT. Thanks.

[CS SANJAY MALHOTRA]

Central Excise permission is not required if you company falls in the Turnover Exemption limit defined for Jewellers in recent Budget announced on 29.02.16.

[YAGAY AND SUN]

In this matter Goods shall be moving interstate for exhibition cum sales. In case of no permission is sought, then, goods can be confiscated. Further, you would have to get registration in Delhi, MP, WB and Odisha as a casual trader. Please check the definition of Dealer in respective State VAT Laws. Further, in case of doubt, then, it is always better to inform the tax/revenue authority or sought permission accordingly to cope with futuristic hassel. CST Form F may also applicable.

You may also refer https://www.wirc-icai.org/material/Final_Presentation_CST.pdf

[Ganeshan Kalyani]

Sri Yagay and Sun, with due respect the querist did not mention about sale in his query. It is only for exhibition.

Sir, various free gift items are moved across state. And to my knowledge no permission is sought from the authority or no authority gives in writing to the assessee the permission or guidance sought by the assessee. Thanks.

[YAGAY AND SUN]

Our reply was based on Exhibition cum Sales which is normal phenomena in such exhibition and movement of stock from one state to other. Even in State VAT laws, the definition of Dealer covers the concept of casual traders for exhibition cum sales. Please the the definition of Dealer in Delhi VAT, MPVAT, WBVAT and Odisha VAT and stay conscious in this matter for adherence with compliance.

[Ganeshan Kalyani]

Sri Yagay and Sun, I would acknowledge your submissions.

Additionally, my views are that there are authority deputed in the field called mobile squad who have the power to ask for invoice of the goods which is loaded in the vehicle and if there is any matter of suspicious in the transaction or if the particulars in the invoice and the material differs then they detain the vehicle and slaps notice and realise vehicle only after making payment of penalty ranging from 15% or so. Hence , I too agree with you inasmuch as the compliance is crucial and it avoids many issues. Thanks.

[Ganeshan Kalyani]

Sri Kalpesh Ji, in line with the views of Sri Yagay and Sun and of mine , you should check for the provisions pertaining to casual traders. The registration is some state is provided for particular period. It will help you to move the goods complying to the provisions of the State VAT act. Thanks.