Price for Stock Transfer to branch in other state

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parasuram (Querist)
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03 October 2019 Dear Sir,

We have a branch in Chennai. Head office in Hyderabad, Telangana state.
Under GST we have to treat branch as seperate entity, we will raise Tax Invoice in IGST and can claim the Input.

My question is can we do under pricing since it is our own branch. suppose the Market value is Rs.5000 and we bill in Rs.1000 will there be any problem. Is there any notification to support your answer.

Kindly help me. Its very very urgent

Parasuram

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 October 2019 You can't under value it but value it at cost(your buying price).

parasuram

parasuram (Querist)
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04 October 2019 Dear Sir,
Thank you for reply. Ours is not trading company. We have manufacturing unit. what cost can be taken for stock transfer.

Thank you in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 October 2019 Consider actual cost of manufacturing.

UMESH KUMAR PANDEY

UMESH KUMAR PANDEY (Expert)
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04 October 2019 yes,dear you will be billing less amount and you will be taken input less amount.
suppose market value is Rs.5k@5%.your gst input will be 250/-when you will be billing for Rs.1k/- your gst input will be Rs.50/-when your branch will be sold it on market value,i.e. on Rs.5k/-gst will be charges for Rs.250/-
i.e. you will be liable for paid 250-50=200/-,if you will be billing on Rs.5k/-gst will be Rs.250/-on fist then on second sales i.e 5k+margin Rs.100/-,gst will be rs.255/-less your input 250/-.finaly you will be liable to pay gst for Rs. 5/-.
kindly think first.
Thanks.
UMESH PANDEY
M-8802914461
M-9911514461.

parasuram

parasuram (Querist)
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04 October 2019 Dear Sir,
In GST point of view it correct. My question is whether can we allowed to do under billing as per GST and Income Tax law.

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