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Consignment sales tax effect & practical problem

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This query is : Resolved

Dharmesh Lad (Querist)
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14 August 2011 Please provide detail of sales tax effect of consignment sales .

gujarat vat tax - effect

practical problem of consignment sales in sales tax.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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15 August 2011 Mr.Dharmesh Lad,
You can actually sell your goods to a customer or authorise any other trader to,either within the same state or outside,sell on your behalf for some agreed
commission.The second type is consignment sales.You have to send the goods on stock transfer authorising him to sell at certain rates.On such sales he will charge the VAT in the bills issued by him and pay to the department wherever he is.He will send you a list of invoices with the amounts received in detail,such as vat,freight,packing charges etc.Along with the list payment is also made by a cheque
for the balance amount(ie after deducting the vat collected,expenses and commission.
This settles your account and you need not pay any vat again.
MJK

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