Interstate branch transfer taxability

Mahavat 3461 views 1 replies

Dear Members,

One of our client is going to start stone crushing activity in Maharastra state and he will register his firm with Maharastra sales tax dept. The final product will be produced in Maharastra state and ready for sale in Maharastra state itself. This final product produced in Maharastra state want to be sold in the state of Goa. The client is also willing to register his firm under Goa sales tax dept. The billing to his dealers based in Goa will be done from his Goa branch office. Now our query is as under;

1. What is the tax liability for the state of Maharastra since the final product is produced in Maharstra.

2. Whether we can show interbranch transfer of goods/ materials without payment of sales tax / vat to Maharstara sales tax dept.

3. Is there any declaration form to be issued to the state of Maharastra sales tax dept in liue of sales tax payement. If yes then what is the procudure.


Please suggest.

 

Thank you.

Rajan.

 

email : rajan.phalke @ gmail.com

Replies (1)

1.There would be no tax liability in The state of Maharashtra as the ultimate sale is being undertaken in Goa itself......

2.Inter branch transfers need not be paid any tax as they wont amount to sales as per the definition under cst act

3.Form  F is to be issued to claim that the transfer from branch in Maharashtra to that of Goa is an Inter branch transfer..


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