student
24 Points
Joined September 2009
Dear Sirs,
I have a query related to Stock Transfer. I am a steel trader in the city of Hyderabad which comes under Telangana State. Earlier I used to sell material under a VAT Bill of 5% but now since the state has been bifurcated I am billing my customer under 2% CST.
I want to open a branch in Andhra Pradesh (which is a different state now) by taking a VAT Registration there separately and make stock transfer from here i.e. Hyderabad to Andhra Pradesh.
In stock transfer I send material from here in one vehicle to the other state under the prescribed documents. I want to know whether I can sell the material in the same vehicle as it is to the customer or is there a rule that the same vehicle number cannot be entered in the bill that I will issue to the customer after stock transfer to another state. I hope you have understood my query.
Also, please let me know if there is such rule that the vehicle has to be changed i.e. the material that is transferred as stock transfer has to first be unloaded at my branch and only then sold separately what will be the consequences if I do not change the vehicle and transfer the material to the party as it is.
Please let me know the documents prescribed as well.
Thanks and Regards
CA Saurabh Agarwal