Issue of c form
KAMLESH KUKREJA
(Querist) 19 March 2013
This query is : Resolved
Mr a have registered business premises in mumbai. He sells goods to mr b(proprietorship business) of mumbai registered under maharashtra vat act . But as goods are manufactured in his gujrat factory so goods will be delivered from his factory to mr b directly. My question mr a will charge vat in his bill or require c form
Raj Kumar Makkad
(Expert) 19 March 2013
Mr. A will charge VAT from B in the given case.
Anirudh
(Expert) 19 March 2013
Dear Mr. Kamlesh,
From the facts revealed by you, it appears that it is a pre-determined sales.
Therefore Form C would not apply.
The Factory at Gujarat has to charge normal VAT in the invoice raised by it on B. (Please note it is Gujarat VAT and not Maharashtra VAT in this case.)
KAMLESH KUKREJA
(Querist) 19 March 2013
Sir there is no office in gujrat only factory is there. tax invoice will be issued by mumbai office. can they charge gujrat vat?
Anirudh
(Expert) 19 March 2013
The situs of the sale is where the goods are located.
In this case the goods are located at Gujarat.
If you say that all the goods produced in the factory at Gujarat are being stock transferred to Maharashtra where you have your office that is a different story. In that case, being stock transfer, you would not be entitled to take input tax credit.
Please come clear as to what is the exact fact situation.
Sankaranarayanan
(Expert) 19 March 2013
yes if it is your branch or head office then the goods are treated as stock transfer, your gujarat brach raise the bill to your without charge any tax and in the place of tax just mentioned stock transfer.
But if stock transfer then the quantity of transfer should not be equal an to same what you have raised the value of invoice to buyer
Sankaranarayanan
(Expert) 19 March 2013
as mr anirudh you need to elaborate your doubt more then we able to explain our view more
KAMLESH KUKREJA
(Querist) 19 March 2013
I am trying to explain my point through another example. Suppose mr.a is manufacturer of gate valve of 52 inches. as 52 inches gate valve manufacture is not allowed in maharashtra so he setup his factory in gujrat where he manufacturer only 52 inches.he does not have any office in gujrat. He does not have his any factory in mumbai. He gets order in mumbai and then he manufacturer the same in gujrat. After manufacturing he directly delivers at buyers premises so as to avoid high transportation cost and space problem as he doesnot have any factory in mumbai. He then issues the tax invoice from mumbai office and payment of bill is also collected in mumbai office. Now in this case what should happen c form, mvat, gvat.
Anirudh
(Expert) 19 March 2013
Whether you are proposing to do the manufacture or already doing the manufacture in gujarat.
Are you purchasing any raw material in Gujarat?
If so, whether you are taking any input tax credit of the VAT paid on the raw material?
How do you discharge your Excise Duty. Whether you have Excise Registration for the factory at Gujarat or not?
