Stock transfer or interstate sales?

Hi,

I want to sell wooden handicraft from UP to Delhi,

It is exempt in UP but probably taxable in Delhi @ 4% (Please Confirm)

I want to know whether I should transfer it directly or create a branch in Delhi to minimise my tax keeping in view the provisions of CST & VAT?

Kindly Advise,

Thanks

 

 

Replies (6)

create a branch

 

Kindly comment with Reason

Dear Saurabh 

If you stock transfer your wooden handicrafts to UP and then sell, then there would be a reduction in the set off for the purchases made by you in the state of delhi . 

if you open a branch in UP then a separate TIN no needs to be obtained by you in the state of UP 

 

Your decision will depend upon the volume and the amount of transaction 

 

ok ...

Hey I want to sell in Delhi not in UP so want to know whether to start a branch in Delhi or sell directly?

Its exempt in UP but taxable in Delhi.

 

Dear Saurabh 

If you stock transfer your wooden handicrafts to Delhi and then sell, then there would be a reduction in the set off for the purchases made by you in the state of UP . 

if you open a branch in Delhi then a separate TIN no needs to be obtained by you in the state of Delhi

 

Your decision will depend upon the volume and the amount of transaction

 

You can also sell the goods from UP itself @ 2% CST by obtaining the C FORM from your customer

 

ok ...

branch .

because if u transfer directly then cst 2% will be paid n no set off so ur cost will increase which would result in competitive diadvantage from local sellers in delhi

but if you create branch then vat on purchases will be available for set off after retention of 2%

note: 2% on purchases will be less than 2% cst paid on finished goods

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