Gst invoice between branch office in other state

244 views 2 replies

1.  Head office at Chennai and Branch office all over India. 

Example1. Contract Executed in Chennai with Chennai office but Chennai branch does not have the facility to execute, so part of the work in executed by Bhopal branch and final product delivery by Chennai Branch and raised the invoice to the supplier.

(company policy :  Income distribution ratio is 60: 40  60% for the branch taken the order and 40% executed/supported Branch)

When Chennai branch will raise the invoice for 100% to the buyer then How the 40% income will be taken by Bhopal)

If Bhopal raise the Invoice to chennai, the overall income of the company will be boosted by 40%)

kindly suggest

Replies (2)
yea you have to raise the invoice for parting value involved

Yes you have to raise invoice for inter Branch services/supply of goods.

Refer latest AAAR.

https://economictimes.indiatimes.com/news/economy/policy/aaar-okays-gst-on-inter-state-office-services/articleshow/67295658.cms.

If you raise invoice from Bhopal to Chennai - additional revenue as per GST .

For accounting purpose inter Branch billing is not a revenue.

 

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