Vat on inter unit transfer of store items

2264 views 3 replies

Sameer

Chartered Accountant

202 Points Joined February 2008

Dear Friends,

One of my client has two manufacturing units/Factories at same location. They have only one Centralised Store which is situated in one of the unit (Unit-I), which also serves the requirement of other unit (Unit-II).

Now my query in this regard, whether the store items issued to other unit (Unit-II) shall be treated as sale and accordingly liable to VAT?...Please help me out.

Regards

Sameer.

Replies (3)

praveen

Chartered Accountant

6971 Points Joined September 2007

No there should not be any incidence of VAT. Levy of VAT gets fastened only on sale. Here there is no sale hence, no levy. However, if both the units are controlled by two difference companies or firms or in VAT terms if both the units have different TIN then it will be a sale.

Anywayz it does not make sense of charging same as output and taking the same as input.

Join us on Facebook https://www.facebook.com/pages/Sampoorna/184315778304697

C.A. Sandeep Wawhal

CA PGDFM BCom

1831 Points Joined June 2010

Inter Unit Transfer is excempt from Vat. Get From-I, if any, provided by state government for IUT transaction which will issued by transferee to the transferor and thus transferor will get excemption against this transaction.

Guest

ONLINE STORE :

====( https://www.fullmalls.com )=====
The website wholesale for many kinds of fashion shoes, like the nike,jordan,prada,****, also including the jeans,shirts,bags,hat and the decorations. All the products are free shipping, and the the price is competitive, and also can accept the paypal payment.,after the payment, can ship within short time.

free shipping

competitive price

any size available

accept the paypal

jordan shoes $32

nike shox $32

Christan Audigier bikini $23

Ed Hardy Bikini $23

Smful short_t-shirt_woman $15

ed hardy short_tank_woman $16

Sandal $32

christian louboutin $80

Sunglass $15

COACH_Necklace $27

handbag $33

AF tank woman $17

puma slipper woman $30

====( https://www.fullmalls.com )=====