Registration under VAT & CST
V V SATYANARAYANA
(Querist) 07 May 2009
This query is : Resolved
Sirs,
We are doing processing activity in which we process the material and give it back to the owner.As per the agreement the 'title' and 'ownership' of the material given to us for processing is always with the client. This does not attract VAT registration.
Now we would like to undertake trading activity in Bangalore, Kolkata & Delhi.
For this purpose do we have to take registration both under VAT & CST or only VAT registration is required.
Please clarify
V V SATYANARAYANA
(Querist) 07 May 2009
Sirs,
We are doing processing activity in which we process the material and give it back to the owner.As per the agreement the 'title' and 'ownership' of the material given to us for processing is always with the client. This does not attract VAT registration.
Now we would like to undertake trading activity in Bangalore, Kolkata & Delhi.
For this purpose do we have to take registration both under VAT & CST or only VAT registration is required in those 3 places.
Please clarify
A V Vishal
(Expert) 07 May 2009
Mr Satyanarayana,
If you are having interstate transactions then CST is must, however, if the trade is within the state then VAT is sufficient.
V V SATYANARAYANA
(Querist) 07 May 2009
Thank you sir.
If the trading is interstate activity, apart from taking VAT registration in these 3 states, is C.S.T. registration also required to be taken separately in these 3 states or at one central point i.e. at our present place of business (state) is taken, it will do ?
Kindly guide.
V V SATYANARAYANA
(Querist) 07 May 2009
Thank you sir.
If the trading is interstate activity, apart from taking VAT registration in these 3 states, is C.S.T. registration also required to be taken separately in these 3 states or at one central point i.e. at our present place of business (state) is taken, it will do ?
Kindly guide.
A V Vishal
(Expert) 07 May 2009
CST can be registered at the focal point viz principal place of the business, Multi registration of CST is not possible since it is a Central subject and applies throughout India
J K Agrawal
(Expert) 08 May 2009
Dear sir
First you are to decide that you want to do business in all these states under one ownership and management or under differed ownership? it is always better to do business under one ownership. If it is so you are to fix a principle, place of business (head office) and you have to take central sales tax registration and state registration. When you open a branch in any other state you are to obtain state registration of that state.
You have one more advantage in this system that is the transfer from one branch to another is not amounting to sale and as such sales tax is not applicable,
V V SATYANARAYANA
(Querist) 11 May 2009
Sir,
We want to do business in all these 3 places under one ownership and management.So at Bhilai (C.G.) we declare as principal place of business and take VAT & CST registration and in other 3 places, Bangalore, Kolkata & Delhi, if we take only VAT registration will it do ?
But I was told that CST though called Central Sales Tax, in fact it is tax on interstate purchases/sales and is guided by State rules say CST (C.G.) Rules, C.S.T.(W.B.) Rules, CST (Delhi) Rules, hence registration under CST in each state is to be taken.
Members may kindly clarify on this point please.
V V SATYANARAYANA
(Querist) 11 May 2009
Sir,
We want to do business in all these 3 places under one ownership and management.So at Bhilai (C.G.) we declare as principal place of business and take VAT & CST registration and in other 3 places, Bangalore, Kolkata & Delhi, if we take only VAT registration will it do ?
But I was told that CST though called Central Sales Tax, in fact it is tax on interstate purchases/sales and is guided by State rules say CST (C.G.) Rules, C.S.T.(W.B.) Rules, CST (Delhi) Rules, hence registration under CST in each state is to be taken.
Members may kindly clarify on this point please.
