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TMI BlogApplicability of State VAT or CSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Query: Ours is Gujarat base Engineering goods manufacturing company say X and we export 99% of our final product, and no finished goods sale in Gujarat (except some scrap generated during manufacturing), procures raw material from Maharashtra by placing Order on Maharashtra Supplier say A , and instruct him to deliver the goods directly to a job-worker located in Maharashtra say ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J without bringing the raw material in Gujarat. Raw Material supplier A raises Invoice on us mentioning buyer as X and consignee as J after charging 2% CST against Form-C. Job-worker J sends us the processed raw material to us X in Gujarat after charging Job work charges. 1. We have been advised that we cannot purchase the goods against From-C as the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... livery does not occasion the movement of goods from Maharashtra to Gujarat. Is this correct? 2. Whether CST charged by supplier A of the raw material is correct? Or we have to pay Maharashtra VAT ? 3. Whether the transaction between our company and job worker falls under works contract? 4. What should we do to minimize tax burden ? I seek your valuable advice in the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, do reply please. - Reply By Pradeep Khatri - The Reply = Dear Manish, We have gone through your query. This matter is bit complicated and needs to be understood, discussed and researched meticulously, before forming any final opinion in this regard. We understand that in this matter stake involved are huge for your organization. Such kind of transaction may fall either side, dependin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g up-on the very material facts and terms and conditions of the Agreements/MOUs/Contracts/POs etc. Further, if you received any assessment order or any objection raised by GVAT Department pertaining to this matter, then, you may share with us. We can help you out. For providing such services, we do charge reasonable fees . You may contact us, in case, you intent to avail our services for seekin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g solution for above query. We remain. Team YAGAY and SUN (Management and Indirect Tax Consultants) Mobile:- 09818131923. E-Mail:- yagaysun@india.com - Reply By SURESH ASTEKAR - The Reply = I will answer only first two questions: 1. We have been advised that we cannot purchase the goods against From-C as the delivery does not occasion the movement of goods from Maharashtra to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat. Is this correct? Yes. It is correct since there is no interstate movement of the goods from the raw material supplier to the job worker both of whom happen to be within the State of Maharashtra. 2. Whether CST charged by supplier A of the raw material is correct? Or we have to pay Maharashtra VAT ? Raw material supplier should charge Maharashtra VAT only and not CST. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By Pradeep Khatri - The Reply = Dear Manish and Suresh, As discuss earlier this matter cannot be replied in one or two liner. Even, reply was submitted without giving any reference and understanding the Section 3 (a) of the CST Act, 1956 ,and judgments pronounced by various High Courts and Apex Court . Time and again, we hereby submit that it is bit complicated matter and should be ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndled by experts. Regards Team YAGAY and SUN (Management and Indirect Tax Consultants) - Applicability of State VAT or CST - Query Started By: - manish dalwadi Dated:- 28-7-2014 Value Added Tax - VAT-CST - Got 3 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment - 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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