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raj shekhar (Querist)

30 June 2012 hi to all..
my query is
my client is having a business in kerala. he wanted to set a branch in bangalore. for that he receives orders in kerala and money remittences also to kerala. but he want to purchase those goods in bangalore and sends directly to customers from here.. is he required to take registration under karnataka and what abt tax payment. plz gimme a solution

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 June 2012 Q1. Yes. need to take registration in Karnataka for purchase goods in Karnataka & send to Kerala by Sales, required both Local vat registration and CST registration (if you not register already)

Q2. Since the Sales you are making from Karnataka to Kerala, so all the sales will attract CST. also all the VAT input you are paying in Karnataka you cannot set off

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raj shekhar

raj shekhar (Querist)

30 June 2012 sir actually kerala is head office.. if i receive order from a.p. i will send the goods to a.p.directly and one more thing is this branch doesnt maintains any cash or bank bal... every sale receipt goes to kerala only..so my query is how to pay that particular amt of tax

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 June 2012 Assumes you are maintaining branch system, but under VAT act, each place of business need to be register under the VAT.

If you are sending the Goods to A.P. with direct billing to customer then need to pay CST, incase you are sending the goods as branch transfer to your A.P branch and making sales from a.p branch then Local vat will attract on that sale,

whether branch maintaining cash & Bank balance or not, that is immaterial for VAT

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