Suppose there is a registered dealer (trader having VAT, ECC and Service Tax for GTA in Maharashtra) setting up a manufacturing unit for the same items that they are trading in M.P, please advise the following -
1) Can excisable stocks from the trading division be branch transfered? If yes, what would the tax (excise & vat / cst ) implication be?
2) Can the goods be branch transfered back to Maharashtra? Again, what would be implication be under excise, vat & cst ? Would a separate warehouse be required for storing goods that are brough back ?
3) Raw material suppliers are located in Maharashtra and to get them to bill against C form would cause CST loss - both while purchasing as well as selling as the major market is Maharashtra.
4) I am more or less sure that this cannot be done, but there could be differing views on this. Can the manufacturing unit do job work for the trading division ?
5) Does all of the above become very simplified if some very small part of the operations is shifted to Maharashtra (an extension of the manufacturing unit) and this unit (located in Maharashtra) does the actual buying and selling ?