Vat query

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nitin

Assistant manager

20 Points Posted on 25 November 2015

My company XYZ ltd purchased goods from abc ltd from gujarat but as per my instructions, abc ltd transferred goods in karnataka branch (xyz ltd). Karnataka branch will sold the goods to the unknown registered dealer.

What should be the ideal procedure and who will issue the required FORMS in VAT?

Before replying Pls consider the road permit to be issued by karnataka branch.

Replies (6)

SUBHAJIT BISHAYEE

Student

20 Points Posted on 25 November 2015

Dear Mr Nitin,

This is not a case of within state sale so dose not attreact vat liability.

It is a pure case of Central Sels tax.

ABC ltd and XYZ ltd both have to be a registered dealer under CST.

Here Form - C will be given by XYZ(Karnataka Br.) to ABC when goods will be despatched via Form E1

sachin

Accountant

20 Points Posted on 25 November 2015

It not vat liability cst if goods transafer branch 2 % paid inter state form E1

sukesh

ipcc student

20 Points Posted on 25 November 2015

Both ABC & XYZ need to get registered under CST act 1952 under section 6 regarding the existence of branch in cst certificate. transfer between the branches shell be free of tax (no cst 2% or any other rate of tax applicable). form F shall be issued by the receiving branch form E1 arises only when the goods in transit is delivered to other party as per customer requirements

nitin

Assistant manager

20 Points Posted on 25 November 2015

Thanx for the reply How can Karnataka branch (xyz ltd) issue form E1. Its not a transit sale. One consultant said :- Xyz has head office in delhi, when material dispatched by abc, invoice should contain billing to headoffice and shipping to karnataka Headoffice will issue Form c and branch will issue Form F. Is this correct ?

nitin

Assistant manager

20 Points Posted on 25 November 2015

sukesh

ipcc student

20 Points Posted on 28 November 2015

When a stock transfer/consignment sale is made b/w the state the receiving state should give form f as per section 6a of cst act of 1952. existance of form c will not arise at all as per sec 8 (3) of cst act of 1952. For more details & clarity contact me to my mail id sukeshnsuki @ gmail.com