Tn vat & cst

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S.Jegadeesan (Querist)

27 April 2012 Dear Sir,
Pl clarify the following

M/s Sayee Pvt Ltd carry on the business of Leather products in Chennai.Now it has decided to give its semi products to the companies in Calcutta(as employees available at cheap cost).There after all the semi products will be returned to Sayee as final product & Sayee will export the final product of leather.
Now any way to avoid the Tax during the movement of goods from TN to Calcutta?
& also from Calcutta to TN?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

29 April 2012 Mr Jagadeeshn,
This can be done as stock transfer for job work under a contract agreement executed for this purpose,using the statutory delivery notes,own delivery challans and while returning the goods from Kolkatta,along with job work bill.As you retain the ownership of the goods before,during and after the job work no VAT /CST problem arises.
MJK

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S.Jegadeesan

S.Jegadeesan (Querist)

30 April 2012 Thanks for your reply.
Further can you clarify the following
.
Suppose Sayee Pvt Ltd transfer the goods from Tn to Kolkatta through Form JJ, Is it mandatory to have a branch in Kolkatta? or it may transfer to the registered dealer?

Is it possible to transfer the goods to unregistered dealer/job worker in Kolkatta?

If yes, what is the form should be accompanied with the finished goods when returned to TN from Kolkatta?

Regards,
S.Jegadeesan

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

01 May 2012 Mr Jagadeeshan,
Here some complications arise.You need not have a branch in Kolkatta. Goods can be sent by a dealer on stock transfer to his C&Fagent,distributors,franhisees,vendors,branch etc.A job work vendor can not be registered if he does not have any taxable T.O.Without a regn one can not issue the required statutory forms,which may create problems at check posts.If your vendor is not elible for regn under WB VAT Act then you have to issue required delivery notes for moving the finished goods from Kolkatta to TN,giving references to earlier despatches to the vendor,along with job work bill and his challan from the vendor.....MJK