VAT on stock transfer/self consumed goods

Ankit Goyal (Banker) (78 Points)

08 January 2008  

The following situation is covered under Punjab VAT act

One of our clients has two branches one at Jallandhar and second at Ludhiana in Punjab.When goods are transferred from Jallandhar branch to Ludhiana branch the VAT invoice is made in respect of same and goods are received at cum VAT price by Ludhiana branch.

It must be noted that both the branches are of a same company.

My question is wether this transaction to self can be regarded as sale(as VAT is only chargeable on sales)? And wether VAT is leviable on sale to self?

What are the supporting section or rules in Punjab VAT act for selfconsumption or branch transfer?