TMI BlogLiability of local taxX X X X Extracts X X X X X X X X Extracts X X X X ..... X is a selling agent in Karnataka for Y 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 invoice 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harged sales tax in his invoice to X (consignee 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 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 loc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al sales tax / VAT. - Reply By sunil gupta - The 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 be 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 ..... - Liability of local tax - Query Started By: - A RAVINDRA Dated:- 3-1-2009 Value Added Tax - VAT-CST - Got 2 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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