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Stock transfer

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Mahendra Singh Dhatarwal (Querist)
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22 December 2011 HI All,

We are transferring some finished goods from Our own factory Hyderabad to our factory Kanpur.

Can you please suggest whether we need to pay excise duty or not if yes then under which rule??/

This is really very urgent.

Thanks & Regards
Mahendra S Dhatarwal

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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22 December 2011 * Inter-state sales are covered by Central Sales Tax Act 1956
* Present rate of CST is 2% of the consideration on sale of goods
* In stock/branch transfer, goods move from one State to another, but there is no ‘sale’. Goods are sent to branch or depot or consignment agent in other State. Stock transfer/branch transfer is not subject to tax since there is no ‘sale’.
* Form F is required to be submitted to establish stock transfer.

Read more: VAT implications on Intra State Stock Transfer – Life after Delhi High court decision in Havell’s and ITC .

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