[URGENT] Tax Issue while purchasing From Online shop

RajeshJ

RajeshJ

Disciple
Hello all , i Buy ed a telescope from sky watcher India [Locaation -Maharashtra ] and Payed Cash via Bank Transfer , everything was fine BUT today i got call from Transport that Item has Been Holded by kasaragod malleswaram check post and I need to go there [3 hrs + ] and Pay Fine 10,000 Rs [YES 10 Thousand Rupees ]

They said product has no Tax Paid - [Currently i didnt Went there yet [got call Afternoon 12/June/2013 [today]

WIll there be ok one i show them Bill ?

I have the purchase Bill , But it shows



Price - XX,XXX
CST 12.5 % - 3500


, so bill says i paid 12.5 % CST , Vat12.5 they didnt wrote anything


Kindly advise /Reply some positive note, Do i really need to pay this amount [10k]?


Note:
1) I am from Kerala
2) ITem is purchased from Online shop [ Had no Cash on Delivery][so Bank transfer] , if it was COD , would have Returned

3)Bill Shows CST 12.5% - 3000 Rs [ SO i payed CST 12.5% ]
 
First, VAT is charged when the buyer and seller are in the same state. When a buyer is in a different state, then CST is charged. Each state has its own rate of tax. So the seller charges tax (VAT or CST) as per the rules of the state he is registered in.

Second, some states have something called a waybill (not same as the sale bill). Whenever a shipment enters the state from another state, it should be accompanied by this waybill and the sale bill. Waybill has to be got from the sales tax department of the city where the buyer is. You then send this to the seller who fills it up with sale bill details. He staples this to the sale bill and hands both documents over to the cargo company during booking of shipment. Kerala is one of the states with this rule. In your case its the fault of the cargo company who should know these rules. They should not have booked the shipment when the waybill wasn't there. Coz they know that shipments get held by the sales tax authority at the state border.

You should now write a letter to the sales tax people declaring that the item ordered was for personal use and not meant for resale or commercial purposes. Then hope that these guys understand your point. But I doubt they will.
 
biozen said:
First, VAT is charged when the buyer and seller are in the same state. When a buyer is in a different state, then CST is charged. Each state has its own rate of tax. So the seller charges tax (VAT or CST) as per the rules of the state he is registered in.

Second, some states have something called a waybill (not same as the sale bill). Whenever a shipment enters the state from another state, it should be accompanied by this waybill and the sale bill. Waybill has to be got from the sales tax department of the city where the buyer is. You then send this to the seller who fills it up with sale bill details. He staples this to the sale bill and hands both documents over to the cargo company dur
Click to expand...
As per email i sended to Seller , He said Delivery Challan and Form , invoices was given to Transport


According to http://www.keralataxes.gov.in/taxrate.aspx Telescope have 14.5 % VAT , But seller showed only 12.5% CST ,

so is it possible to pay 2.5% tax on MRP and redeem the goods from Check Post , or am i forced to pay 10 k :(

is there any solution now?



m-jeri said:
How big is this item?
Click to expand...
Shipping Carton Dimensions67x 80 x 11 cm3 / 125 x 39.5 x 46.5 cm3 <-Above this size

http://www.skywatcher.com/swtinc/product.php?id=51
 
rads said:
Is there any list available for what procedures each state follow these days ?
Click to expand...
Previously I have Purchased from Flipkart and some other Online shops COD , never had any issue but used Professional Couriers] , First time using ROad transport since they said it weight 20kg and parcel by Couriers will cost More , NOw if i really need to pay fine of 10k Rs , it was better i purchased via Courier :(
 
RajeshJ said:
As per email i sended to Seller , He said Delivery Challan and Form , invoices was given to Transport
Click to expand...
Did you give him a waybill and did he then attach this to the invoice and challan?

According to http://www.keralataxes.gov.in/taxrate.aspx Telescope have 14.5 % VAT , But seller showed only 12.5% CST
Click to expand...
Seller can only charge what the rule of his state is.


Your issue is really the absence of a waybill with the shipment, IMO.
 
biozen said:
Did you give him a waybill and did he then attach this to the invoice and challan?


Seller can only charge what the rule of his state is.


Your issue is really the absence of a waybill with the shipment, IMO.
Click to expand...


No , He didnt attach waybill , Only Challan , a Form , Invoice

what is the consiquences now ? can i solve this issue without paying 10k Rs


Thanks again for replying


--
if this was Cash of Delivery , i would have cancelled Order , But since this was Bank Payment
 
ST authority usually understand that FK etc ship items for personal use. FK and others also attach a declaration of personal use clause. So it gets through.


Try the letter I suggested you write.
 
biozen said:
ST authority usually understand that FK etc ship items for personal use. FK and others also attach a declaration of personal use clause. So it gets through.


Try the letter I suggested you write.
Click to expand...
Code: 
First, VAT is charged when the buyer and seller are in the same state. When a buyer is in a different state, then CST is charged. Each state has its own rate of tax. So the seller charges tax (VAT or CST) as per the rules of the state he is registered in. 

Second, some states have something called a waybill (not same as the sale bill). Whenever a shipment enters the state from another state, it should be accompanied by this waybill and the sale bill. Waybill has to be got from the sales tax department of the city where the buyer is. You then send this to the seller who fills it up with sale bill details. He staples this to the sale bill and hands both documents over to the cargo company during booking of shipment. Kerala is one of the states with this rule. In your case its the fault of the cargo company who should know these rules. They should not have booked the shipment when the waybill wasn't there. Coz they know that shipments get held by the sales tax authority at the state border.

You should now write a letter to the sales tax people declaring that the item ordered was for personal use and not meant for resale or commercial purposes. Then hope that these guys understand your point. But I doubt they will.

ok , thank you , i will try contact Sales tax department in my District and ask about way bill and enquire about the issue also
 
Yesterday Went to Check Post and meet Sales tax assistant commissioner , He after Asking the reason and accepting Form 16 , he Approved ,He said in future Attach Form 16 with Bills on Lorry and there wont be a problem

Sales tax assistant commissioner was a friendly guy

Thankyou for all the informations .Ty biozen
 
RajeshJ said:
Yesterday Went to Check Post and meet Sales tax assistant commissioner , He after Asking the reason and accepting Form 16 , he Approved ,He said in future Attach Form 16 with Bills on Lorry and there wont be a problem

Sales tax assistant commissioner was a friendly guy

Thankyou for all the informations .Ty biozen
Click to expand...
Did you have to pay anything?
 
Sure ,you all are welcome but I don't have item yet. Need to show signed papers to VRL transport. And collect from there .


Will upload. SS once I get item


:)


6pack said:
Did you have to pay anything?
Click to expand...
No, just shown form 16 , and he asked about what all object can we see through telescope

Just that,Nice and friendly guy



Only problem I faced was travel. 2x 2 hrs travel in local train . Only local train stop there


Started at 6;30 from home. .reached back home at 3/4 pm.
 
Great.

Perpetual revenue shortfall for the government means that the agencies (including but not limited to Income Tax, Sales Tax, Customs, RTO departments) have set revenue targets for their officers these days. Meaning they are set a target to collect a certain amount by way of fines and penalties per month. A percentage share of the penalties they bring in is given to them. It improves their appraisal. And also this way there's a disincentive to ask for a bribe. The fallout is that officers have become too strict. Let them catch a shipment where the paperwork is slightly deficient or something looks fishy and they'll go after it like hell.

But it seems you got lucky with the ST fellow. Sounds like a decent man.
 
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