banner_ad

Vat on stock transfers

337 views 1 replies
Whether vat is levied on stock transfer from one branch(branch-a) to another branch(branch-b) within the state?Whereas this material is final product in branch -a and it is raw material in branch-b
Replies (1)

Absolutely not...transfer of goods from one branch to another, whether "within the state" or "outside the state" is not liable to VAT or CST as they do not involve "sale". Only thing is that entire ITC is allowed in case of intra-state stock transfer whereas only partical ITC (i.e., after rentention of 2% of ITC by State Governments) is allowed in case of inter-state stock transfer. As far as nature of product is concerned, I think it depends whether you are transferring the 'finished good after some processing" OR "raw material or finished good as it is". In the former case, it will be stock transfer of 'finished good' & in the later case it will stock transfer of 'raw material' or 'finished good', as the case may be. However, it always will be raw material for branch B...

Hope ur doubt is cleared now...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details