Transfer of asset within the same company- gst apllicability

12133 views 12 replies

A company has transferred its fixed assets from one branch to another branch located in a different state. Is GST liable to be paid on the transfer of assets?

Replies (12)
Yes.GST is applicable.
it applicable GST since having different GSTINs

How will it be calcualted. There was no consideration paid. Can you quote the reference?

 

As per valuation rule on open market value,
Yes Gst is applicable even if supply take place between related person.

Even if no no invoice was raised and only book entry was made?

they are called distinct persons because they have same PAN number but different GSTIN number
yes Menon ji correct as per section 25 (4) Cgst act

aaaa

As per Schedule 1 of CGST act permanant transfer of business assets where ITC has been availed without consideration is considered as activity as supply . As per Schedule II transfer of business asstes is called supply of goods As per Schedule I of CGST act entry 2 supply of goods/services between related person without consideration will be considered as supply as per valuation section 15 (4) of cgst act if value is not determined according to (1) than value may be deteremined according to valualtion rule. and according to valuation rule value should be open market price if available

Now my question is Whether shifting expenses like Transpiration for Transfer of Assets from one branch to another branch would be capitalized or Treat as revenue  expenses.

As per Sec 25(4) of CGST Act, 2017 every branch/office of a company/entity having separate GSTIN belonging to one legal entity (single PAN) is a distinct person, whether located in the same state or different states. So, supply of goods or services between these branches are covered within the meaning & scope of supply U/s 7(1) . Further, as per Para 2 of Schedule I of CGST Act, even if consideration is not involved, supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business is taxable under GST, if the said supply is otherwise not exempted.

Permanent transfer or sale of business assets on which input tax credit has been availed will also be treated as supply even if there is no consideration received. GST is applicable to the sale of business assets only. It does not apply to the sale of personal land or building and other personal assets.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register