TMI BlogLiability of local taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Liability of local tax X X X X Extracts X X X X X X X X Extracts X X X X ..... who is a manufacturer in Karnataka. X procures an order from Z in Tamilnadu and informs Y to raise the invoice in the name of X and mention consignee as Z for the order so procured. Y prepares an inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice on X and consignee as Z and send the material directly to Z in tamilnadu attaching one more invoice raised by X on Z with 2% CST against form C. Y has not charged sales tax in his invoice to X (c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsignee as Z) The said transaction is done taking the benefit of section 8 & 6 of CST Act. I would like to know whether the said transaction is in order and as per section 8 of CST Act. Will there be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any liability of local tax to Y in the said transaction. Please clarify Reply By Surender Gupta: The Reply: It is a interstate sale and not subject to local sales tax / VAT. Reply By sunil gupta: Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Reply: As per my view transaction from Y to X will be a Local sale which is liable for Local VAT. The transaction between X & Z is an interstate sale.The benefit of sec. 8 & 6 of CST Act will not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e available.Please refer to decision in case of Indus Steel & Alloys Ltd Vs. State of Tamilnadu and others Reported at (2008) 18 VST 546 ( CSTAA) X X X X Extracts X X X X X X X X Extracts X X X X
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