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Tax-liability on branch transfer from mumbai to b'lore

Dimple (Proprietor) (25 Points)

30 August 2012

Hi,

One of our clients, having his HO in Mumbai, has opened a branch in Bengaluru (Karnataka). Wanted to understand the tax-liability when goods are transfered by HO in Mumbai to Branch in Bengaluru. The branch is registered under the composition scheme and hence shall not be able to claim input credit on its purchases.

Thanks.

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6 Replies

Michael Nelson (Student CS) (21 Points)
Replied 31 August 2012

That is really impressive,I sent you a mail through your kontactr form here but didn't get any answer

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estetik

Brajesh gautam (student) (232 Points)
Replied 02 September 2012

maintain thae separate record at branch under vat & deposit the vat tax of branch separetly more over stock transfer will be done under F form issued monthly.

poonam dahal (Student) (27 Points)
Replied 04 September 2012

well if the branch is registered under composition scheme no ITC is availed ,moreover the branch needs to manintain separate records of it's transaction an HO will finally compile the records and separate composition scheme goods

CA.Kanhaiyalal Gupta (Taxation Incharge) (290 Points)
Replied 20 November 2012

Dear All,

My question is :-

1) A Company registered in Mumbai under MVAT

2) Branch in Delhi

We have taken DVAT number with additional address of Mumbai. But in case of Mumbai we have not amendment Delhi address

During same period we have transferd some good from Mumbai to Delhi and Delhi to Mumbai can we issue form "F"

Please clarify

Regard's

CA Kanhaiyalal Gupta

Brajesh gautam (student) (232 Points)
Replied 21 November 2012

if goods are sent from branch it would not be stock transfer but sale return. Form f neeeded for transfer from HO to branch

subramanya (Professional) (907 Points)
Replied 27 November 2012

Originally posted by : Dimple
	Hi, One of our clients, having his HO in Mumbai, has opened a branch in Bengaluru (Karnataka). Wanted to understand the tax-liability when goods are transfered by HO in Mumbai to Branch in Bengaluru. The branch is registered under the composition scheme and hence shall not be able to claim input credit on its purchases. Thanks.

Hi Dimple,

To the extent of my knowledger, first hurdle is being composition dealer you cann't take any inwards from outside the state !!! You must be a Registered regular dealer.

Reversal of Input tax credit adjustment entries has to be passed in HO Mumbai as per the Maharashtra vat act and rules