Mukesh (Accounts Executive) (35 Points)
27 February 2018Sir,
Company Head Office is in Kolkata and Branch Ofice in Gauhati. Gauhati Branch purchased Tea from Auction at Gauhati charging SGCT/CGST in the bill. Gauhati Branch then send the same goods to Head Office at Kolkata charging IGST in the bill.
Head Office directly made the payment to Gauhati Auction Brokers and did not made any payment to his Branch Office sales.
Now, will there be any issue claiming ITC at both the offices.
I would be thankful to the Experts for the above clarification.
vamsi krishna
(Article Assistant)
(268 Points)
Replied 27 February 2018
Sir,
Let me know one thing, For example if Gauhathi branch purchased Tea in aution at a price of 100,000 (without GST).... what is the billing price to Headoffice while sending this goods from Branch to Head office which is located at kolkata.....
Thanks
Mukesh
(Accounts Executive)
(35 Points)
Replied 27 February 2018
Selling price to Kolkata office is the same price purchased at Gauhati Auction.
Earlier we used to make a Stockt transfer against Form F.
vamsi krishna
(Article Assistant)
(268 Points)
Replied 27 February 2018
Sir,
If price charged by branch to head office is as same as purchasing price (no profit eliment in Branch books for this transaction)......
There will be no issue..... even payment directly made by headoffice to auctioneer..... you can pass one simple journal entry in books of branch to to setoff the liability as well as asset....
There is no doubt about denaing credit in such circumstances
Thanks
CAclubindia
