Vat on depb sales

venish ladva (Querist) 06 May 2013 This query is : Resolved
I (from gujarat) have sold DEPB license against f form to purchaser who is situated in west bengal Whether VAT would be levied ??

what if i have entered in consignment sale agreement that the goods(DEPB) will be used by purchaser and will not be sold to others??

thanks in advance

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R K JAIN (Expert) 06 May 2013
The DEPB can be stock transferred against F Form as DEPB is goods. The stock transfer on consignment basis is only for sale purpose not for personal use. The DEPB can be stock transferred to Head Office or branch office for sale and the tax will be payable in the state in which the DEPB is transferred and sold.

venish ladva (Querist) 06 May 2013
i.e. if it is sold on f form basis that means purchaser will sell in his state and vat would be collected and paid to that government hence no liability of seller could be arise for his sale ???

but still vat department says that you have to pay vat on sale of depb.

then which type of document would be required to go against department...

thanks in advance..

Anirudh (Expert) 08 May 2013
What the purchaser would do with the DEPB is his look out.

As far as you are concerned, you have sold the DEPB to the purchaser. Since the purchaser is in West Bengal and you in Gujarat, the sale will attract applicable CST in your hands. If you can obtain Form-C from the purchaser, then you will be able to avail the concessional rate of CST otherwise, you have to pay CST at the normal rate of VAT applicable in the State of Gujarat.

The Form-F has no application in this case.