Stock Transfer

This query is : Resolved

Dipendra Dev (Querist)
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18 July 2008 A COMPANY HAS HEAD OFFICE IN DELHI AND BRANCH AT NOIDA. IT PURCHASES SOME VIDEO CONFERENCING ITEMS FROM DELHI AND STOCK TRANSFER AGAINST FORM F TO NOIDA BRANCH. AGAIN THE SAME MATERIALS WERE RETURN BACK TO DELHI FROM NOIDA. WHAT ARE THE ACCOUNTING TREATMENT? CAN IT REVERSED THE SALE AGAINST F FORM VIA CREDIT NOTE.
OR
AGAIN THE SALE AGAINST F FORM FROM NOIDA TO DELHI CAN BE DONE?
SECONDLY
CAN WE DO THE STOCK TRANSFER WITH CHARGING FULL TAX ( WITHOUT F FORM)OR AGAINST C FORM?

I HAVE A DOUBT BECAUSE IF IT IS ENTERED AS SALE AGAINST F FORM AT DELHI AND FOR REVERSAL AGAIN WE BOOKED THE SALE AGAINST F FORM AT NOIDA BOOK IT WILL HIT THE TURNOVER.

PLEASE ANSWER THE QUERY.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 July 2008 This is only a branch transfer not a sale and therefore a memorandum account would suffice.

When goods were sent to branch debit branch and credit stock at cost and when goods are returned debit stock and credit branch at the issue cost so that the accounts get squared up.

Dipendra Dev

Dipendra Dev (Querist)
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18 July 2008 Are we require to get Form F from the department for these type of transactions or no need of Form F by squaring the same