Cst on subsequent sale as per ap vat
Mohammmad Wajid
(Querist) 16 May 2014
This query is : Resolved
M/s A Dealer in Hyderabad ( Telengana AP) purchased goods from M/s B of Mumbai ( Maharashtra) for Rs 24378/- (includes of CST tax of Rs 478/-) against C Form (inter state transaction)
Than M/s A Dealer in Hyderabad ( Telengana AP) sale the same goods to M/s C of Kolkata (West Bengal) for Rs 33558/- (includes of CST tax of Rs 658/-) while movement fo goods from Maharashtra against the C Form (inter state transaction)
What will be the correct option for them for filling of CST returns and payment of CST tax
1) Can claim exemption under section 6(2) of CST Act as M/s A(second sale) sold the goods to M/s C of Kolkata (West Bengal) while movement of goods from Mumbai and can file the returns by mentioning it in exempted sales u/s 6(2) for CST returns.
2) Are has to pay difference CST tax of Rs 180/- (658-478)
Purchase input CST tax Sale output CST tax difference
23900 478 32900 658 180
How to fill the CST returns because the option for input tax deduction is not available for CST returns in online filling. If we see the VAT online filling options it mentioned separately and clearly for purchase and sales details for filling and for claiming of input exemptions which are similarly not available for CST returns
3) Are has to pay total CST on sale of Rs 658/- and fill the returns as turnover of Rs 32900/- as CST paid on purchases cannot be claimed as input tax
Please suggest and guide us in this regards
Thanks
T. Kalaiselvan, Advocate
(Expert) 18 May 2014
consultation with a tax consultant/auditor will be a better idea for a proper guidance and advise on the subject.
R K JAIN
(Expert) 18 May 2014
This is a sale as per section 3(b) and exempted under section 6(2). A need not to charge tax and submit E-1 Form obtained from B and C from from C to his Assessing Authority.
