CST Applicable and C Form Issue, VAT + CST

[Fine Resources]

Dear All,

We (ABC Co.Maharashtra) supply material to XYZ Co.(Mumbai,Maharashtra). Now they have started their Site at Madhya Pradesh and instructed us to supply material directly to M.P.mentioning Ship to M.P. and Bill to Mumbai charging 2% CST. They will issue C Form through Mumbai Office.

Our query is that their site at M.P. not registered under CST Act in M.P.,so can they issue c form through Maharashtra Office under MVAT Registration ?

Is it possible ?

Regards

Posts / Replies

[Ganeshan Kalyani]

The will certainly will not be able to apply for form C and they are not registered. They will have to get registration first. otherwise full rate of tax can be levied.