Interstate sales and tax liability

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suresh babu

studying

21 Points Posted on 19 January 2013

Dear All,

Company A, Registered at Kerala having branches at Mumbay and major cities. The branches are situated for distribution against orders developed in the market. Company A tranfers goods with Stock Transfer Note without tax collection. The branches against their orders sales the goods and balance if any returns to Head Office at various intervels.

My Question is

What is the tax structure in side kerala and out side

Can get any tax credit for the sales tax collecting from last point of sales

How to avoid the payment of tax or minimum tax. Since the company is just started and this tax plays a major cost implement for pricing.

Regards

Suresh Babu

Replies (2)

CA Manoj Chaudhary

Finance Manager

32 Points Posted on 19 January 2013

Suppose if you pay cst on last point sale in maharashtra....and you have paid input cst on purchase of said material from kerala...then these both taxes paid /collected in different states can not be inter-adjusted...

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 03 February 2013

Mr Suresh babu,

On all the stock transfers done the Kerala company to its branches,it has to reduce its input tax claim by 2% of transfered goods value. Tax paid in other states can not be adjusted with any liability in Kerala. If goods are returned within six months it can be declared in the monthly returns tax benifit can be reclaimed.....MJK