Branch transfer

CA. Sushant Bhatnagar (Associate Manager - Taxation)   (49 Points)

03 September 2013  
Dear All, I have a query. This question was asked to me in an interview. I want to know expert views on the same. If a packed material priced at Rs. 1000/- is dispatched as Branch Transfer from State A to State B. However the value disclosed in delivery challan is Rs. 750/-. Would this incur any default on consignor/consignee ? My reply to interviewer was "Yes, it can be treated as avoidance of Tax" however I'm not sure if I have replied correctly. Please help by replying what will be the actual consequences of the same. Thanks & regards CA. Sushant Bhatnagar