clarification on sales tax
Querist :
Anonymous
(Querist) 02 February 2010
This query is : Resolved
A dealer who is registered at Maharashtra, would like to open a godown in Andhra Pradesh and get his material through stock transfer and sell from Andhra pradesh to Andhra Pradesh dealers and also to different dealers in the entire country. The objective of this is one of his big customer who is situated at Andhra Pradesh would like him to open a godown to meet their urgent requirements.
In the above scenario we need clarification on the following:
1. Whether the dealer has to take APVAT registration and charge applicable rate of tax in A.P.?
2. Whether he can sell the goods through his Maharashtra Sales tax registration and charge CST for Andhra pradesh sales?
A V Vishal
(Expert) 02 February 2010
1. Whether the dealer has to take APVAT registration and charge applicable rate of tax in A.P.?
Yes, Registration is a must in case he opens a godown and transfers stock to the godown then the billing will be done in A.P viz the sale point, hence he will be liable to pay VAT @ applicable in A P.
2. Whether he can sell the goods through his Maharashtra Sales tax registration and charge CST for Andhra pradesh sales?
In such case there is no stock transfer, the principal office bills directly the customer and supplies the materials/goods.
