tax payment and validity of transaction, VAT + CST

[anish shah]

dear sir,

we are based out of gujarat having VAT  registration for gujarat region only and also having CST registeration.  

i have done recent transaction buying mtrl .from Maharashtra and also sold in Maharastra without bringing the material to gujarat., i am not having VAT registration in Maharastra.  is this valid transaction ??  if yes what taxes will come in picture in both buying and selling.

can i show Nil taxes in my sales bill .

Posts / Replies

[CA. Surender Gupta]

As per my limited knowledge of VAT laws, no state can levy sales tax / VAT on transaction not occurred to related to the the concerned state.

In your example, as a layman, I would say the transaction is not taxable in Gujarat at all. But, what the document / proof you have to prove the same? Was it a cash purchase, or delivery to a place located within Maharashtra etc. etc. which you may need to answer to address the issues that may arise for determination of the nature of transaction.
 

[vasanthi siva]

Dear Sir,

We are doing  exempted sales (CT3 forms)  labour sales and local vat sales (5 percent ) and Interstate (cst 2 percent ) sales.  can you please explain us how to calculate  ITC and how to arrive reversal of credit. Please explain us.

Thanks

vasanthi