Vat for

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Ravi Jhamb (Querist)
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22 August 2012 Dear Sir

Our company have two branches. it is in delhi and Gurgaon. Our senior transfer the goods to delhi branch through F form. They charge the excise duty in gurgaon and made sale in delhi after charging 5% Vat. Wat is the advantage to company after doing such transaction.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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28 August 2012 Mr Ravi jhamb,
Excise duty has to be paid wile removing the goods from manufacturing unit for sale. By sending these items on stock transfer against 'F' form you avoid payment of CST. There is only one incidence of tax.....MJK

Ravi Jhamb

Ravi Jhamb (Querist)
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31 August 2012 Yes we are avoiding to pay CST. But CST payment is beneficial for buyer. like 100*12.36%= 112.36*2% CST = 115. but through our transaction is costly for buyer. 100*12.36%= 112.36*5% DVAT = 118. Wat is the advantage to company for transfering goods to delhi branch.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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31 August 2012 Mr Ravi jhamb,
2% CST is while selling products against 'C' form. It is possible for a limited number of customers only. Selling through a branch can be on a retail basis,and readily available for customers,which means there will be more sale.Some other dealers also can keep your goods in their stores.....MJK

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