Stock Transfer
Querist :
Anonymous
(Querist) 16 February 2011
This query is : Resolved
Can a dealer get CST billing from a dealer of same state say "X" at it's branch office in some other state say "Y" and after that make stock transfer to his main office at "X" from it's branch office at "Y" against F-Form
R.Ramachandran
(Expert) 16 February 2011
What is the point?
You will end up paying CST and transportation charges first from X to Y's branch office in another State and then from Y's branch office to Y's main office which is in the State in which 'X' is located.
When you effect ultimate sales from 'Y''s main office (which is also located in the State in which 'X''s office is situated) you have to pay VAT.
If only you had bought the goods from 'X' straight away in the 'Y''s main branch in the Same State by paying VAT, you can take credit of the same and then when you make sale at higher price, it would be enough if you pay only the difference in TAX after adjusting the credit available with you.
But in your proposed plan, you will be incurring additional cost by way of CST (which is not available as credit) and two times transportation charges.
