Sale to own branch against form c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2012 Can a company sale goods to its branch located other state against form C
AO disallow stock transfer to branch on the basis of predetermind sale.

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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01 June 2012 It is well established principle that one cannot sell to himself. A company cannot make sell to its branch. If is not possible to do the stock transfer, u can directly sell to the cutomer without effecting any stock transfer.

Here one more thing I wish to mention, there are commissioner circulars in several states which clarify that benefit of stock transfer cannot be denied merely because contract of sale has been entered into before the stock transfer.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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23 July 2012 When a particular stock is earmarked for a particular buyer and stocks are transferred to your own branch, it will be treated as Interstate sales on the basis of pre-determined sale. The observations of the Supreme Court decision in case of M/s. Ashok Leyland Ltd 134:STC:473 (SC) wherein the apex court has held that once the assessing authority accept form F and has held the transaction as branch transfer, i.e final and no revision can lie against the same. So whether your CST forms of the branch is accepted or not?