Diff between goods for trade or goods not for trade (h.p.)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2016 Hello,
I am an accountant a firm situated in himachal pradesh that manufacture Weigh Bridges. For sale when we fill road permit (Vat 26A) in which we enter goods not for trade. But suddly someone ask us to fill goods for trade, please help me.

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2016 Please tell me the solution

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2024 The distinction between "goods for trade" and "goods not for trade" typically relates to how goods are classified for regulatory and taxation purposes, especially in contexts like road permits (VAT 26A in your case). Here’s a breakdown of the difference and its relevance in your situation:

### Goods for Trade:

1. **Definition**: Goods for trade are items that a business intends to sell or trade in the normal course of business operations.

2. **Purpose**: When you classify goods as "goods for trade," it indicates that these items are being transported or traded commercially, where the primary purpose is sale or resale.

3. **Documentation**: Goods for trade are usually accompanied by commercial invoices, sales receipts, or other documents that clearly indicate they are intended for commercial transactions.

### Goods Not for Trade:

1. **Definition**: Goods not for trade are items that are not intended for sale or commercial trading. These goods might include items used internally within the business, samples, or goods being transported for repair, exhibition, or other non-commercial purposes.

2. **Purpose**: They are typically goods that are not part of the business's regular sales inventory or are not intended for immediate resale.

3. **Documentation**: For goods not for trade, the documentation might include specific declarations or forms (like VAT 26A) that indicate they are not being transported for commercial sale or resale purposes.

### Application to Your Situation (Manufacturing Weigh Bridges):

Since your firm manufactures Weigh Bridges, here’s how the distinction might apply:

- **Goods for Trade**: If your firm is transporting Weigh Bridges that are intended for sale to customers, these would likely be classified as goods for trade. You would need to declare them as such when filling out forms like VAT 26A, indicating they are intended for commercial sale or trade.

- **Goods Not for Trade**: On the other hand, if the Weigh Bridges are being transported for purposes other than sale, such as for installation, repair, demonstration, or internal use within your business (e.g., as samples or for exhibitions), they would be classified as goods not for trade. In such cases, you would need to specify this in the relevant documentation like VAT 26A.

### Importance of Proper Classification:

- **Compliance**: Correctly classifying goods ensures compliance with regulatory requirements, including taxation laws and transportation regulations.

- **Documentation**: It helps in maintaining accurate records and ensures that the appropriate taxes or duties are applied based on the purpose of the goods being transported.

### Conclusion:

In your firm's case, if you were previously classifying Weigh Bridges as goods not for trade on VAT 26A and someone is now requesting goods for trade classification, you would need to determine the primary purpose of the transportation:

- If the Weigh Bridges are intended for commercial sale or resale, classify them as goods for trade.
- If they are not intended for immediate sale but for other purposes (like installation, repair, or internal use), classify them as goods not for trade.

Always ensure consistency and accuracy in classifying goods to comply with regulatory requirements and to avoid any misunderstandings during transportation and taxation procedures.

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