Vat in case of multiple units

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aman (Querist)
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26 September 2014 Dear Experts
Our company has three units
1. Uttranchal (Main Manufacturing Unit)
2. Gurgaon (Head Office)
3. Delhi (Registered Office)
Main sales is from uttranchal. However sometimes stock is transfered from uttranchal to gurgaon & delhi and sold thereafter from gurgaon & delhi. Also company engage in trading in gurgaon & delhi.
Now my question is for the purpose of payment of vat & cst as well as filling of returns in delhi & gurgaon, which turnover needs to be considered....total turnover of the company including uttranchal or the turnover of delhi & gurgaon separately>>???

Thanks in Advance

jaimin shah

jaimin shah (Expert)
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27 September 2014 Dear Aman,

For computing VAT/CST, stock transfer from Uttaranchal to Gurgaon/Delhi will be treated as purchase against F Form and Sales will be invoicing from Gurgaon/Delhi.

Hope above will satisfy your query.

aman

aman (Querist)
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27 September 2014 Dear Sir
For the purpose of payment of tax & filling of return in delhi, do the turnover of delhi need to be considered or turnover of whole company??

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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02 August 2025 Great question! Here’s how it generally works for VAT & CST in cases of multiple units across states:

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### 1. **VAT & CST Payment and Returns – Unit Wise**

* **VAT** is a **state-level tax** and you are required to register **separately in each state** where you have a business presence or conduct sales.
* For each state’s VAT registration, the **turnover considered is only the turnover related to that state** — i.e., sales made from the registered place of business in that state.
* So, **for Delhi VAT return and payment**, you only consider:

* Sales originating from Delhi unit (including stock transferred from Uttarakhand to Delhi, treated as purchase from Uttarakhand),
* Purchases and sales within Delhi for that unit.
* Similarly for **Gurgaon VAT returns**, consider only Gurgaon-related sales & purchases.

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### 2. **Stock Transfer & F Forms**

* Stock transferred from **Uttarakhand (Main Unit)** to Gurgaon/Delhi will be treated as **interstate sale by Uttarakhand unit** and **interstate purchase by Gurgaon/Delhi units**.
* The Uttarakhand unit will issue invoices under **CST with Form F** (or relevant Form C), and the Gurgaon/Delhi units will account for these as interstate purchases.
* Sales made from Gurgaon/Delhi will be treated as local sales of those units with VAT charged accordingly.

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### 3. **Turnover for Return Filing**

* For **each state return**, only consider turnover relating to that state (including local sales and interstate purchases).
* You **do NOT combine the turnover of all units across states** for filing returns or paying VAT in any single state.

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### 4. **Summary**

| State | Turnover Considered for VAT & CST | Notes |
| ----------- | --------------------------------- | --------------------------------------------------- |
| Uttarakhand | Sales made from Uttarakhand unit | Stock transfer treated as interstate sale |
| Gurgaon | Sales from Gurgaon unit | Include stock received from Uttarakhand as purchase |
| Delhi | Sales from Delhi unit | Include stock received from Uttarakhand as purchase |

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### So for your question:

* **For Delhi VAT & CST return & payment, consider only turnover of Delhi unit (including goods purchased from Uttarakhand unit).**
* **For Gurgaon VAT & CST return & payment, consider only Gurgaon unit turnover.**

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If you want, I can help you draft an internal policy note or explain this in detail to your tax consultants or team. Would you like that?

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