Ashish Sharma (Service) (1028 Points)
22 October 2010Can a company billed a Tax Invoice from its branch office if the goods purchased from its head office situated other state before setting up branch.
Let an example if A co. situated in Delhi get P.O. from a party in Punjab stating that it will raised bill from its branch office in Punjab so that party can claim input tax. the goods purchased from head office and sent to the party. can A co. billed from its branch.
Ravi Prasad
(Self employed)
(148 Points)
Replied 16 November 2010
How can you issue a bill from a branch which is not even in existence at the time of such sale. Further, for the purpose of the taking input tax credit, it has to be a tax invoice issued from a registered dealer under the concerned State VAT Act. Since you have not even obtained registration under the relevant State Act for the branch, your purchaser will not be able to take input tax credit as no unregistered person can collect VAT in his bills. It is the privilege of the Registered dealers only.
Even if the branch is registered and the goods have moved from Delhi to Punjab as a consequence of the Purchase Order issued to the Head Office in Delhi, then it is an Interstate Sales from Delhi to Punjab.
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