LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

n v sudhakar (dgm - accounts)     02 February 2010

clarification on sales tax

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?



Learning

 2 Replies

Sachin Garg (Advocate)     03 February 2010

Dealer have to take registration in AP.

APARNA NANDAKUMAR (ADVOCATE &TAX CONSULTANT)     22 February 2010

It is evident from your statement of facts that your client's customer wants him to operate from and within A.P. In such an event, A.P.registration is a must. Even if the movement of goods is  an inter-State stock transfer, the sales from the godown at A.P. would be regarded as local sales and hence the requirement for registration. On the otehr hand if he wants to sell it through the Maharashtra registration, the goods have to move by way of an inter-State sale directly to the purchaser's place.

 A sale from the A.P.godown within A.P. cannot fall witihn the ambit of CST Act.  


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register