Status of Sale, VAT + CST

[ajay kumar]

Seller & Buyer are located in Delhi & goods consigned to MP(interstate). Seller charging 2% cst Agst C forms from buyer whom located in Delhi( E1 Sale) .pls confirm the status of sale.

Posts / Replies

[Dinesh Gupta]

I think it is transaction which is being done by most of the dealers against C form along with E-1 form. It is an acceptable transaction.

[Pradeep Khatri]

Buyer and Seller can be in same State In CST, UP v.Mevalal Kewal Kishore - 1976 38 STC 551 (All. HC) - Both dealers A & B were from UP. A entered into an agreement with B. Under the agreement, food-grains were despatched by A to a place outside the State. Railway Receipt was obtained in the name of 'Self' i.e. A himself. The RR was then endorsed by A to B. Allahabad High Court held that it is transfer by delivery of document of title to goods and hence sale by A to B is an Inter-State sale. Same view in Duvent Fans v. State of Tamilnadu 1999 113 STC 431 (Mad HC DB),Regards, Pradeep Khatri, Indirect Tax Consultant, yagay@in.com