Treatment under vat act
Jatinder Chugh
(Querist) 18 May 2010
This query is : Resolved
When a co. is regd under Vat Act in Delhi and opnes a frenchise in Punjab. Whether the co. would charge cst @ 2% on goods sent to frenchise or it can be treated as stock transfer. I also want to know when co is regd under Vat Act in Punjab and opens a frenchise in Punjab whether the goods sent to frenchise would be a sale or if not when it would become sale of the co
Sumit Batra
(Expert) 18 May 2010
appoint him as ur agent and treat is as stock transfer.
AMIT BAJAJ ADVOCATE
(Expert) 18 May 2010
You can transfer the goods from delhi to your punjab branch by way of stock transfer against F forms under CST Act whereby no CST will be payable on such transfer of goods.F forms are issued only in case of interstate stock transfer to branch.
If you are already a registered dealer in Punjab under PVAT Act and also has a branch in the punjab you should get your certificate of registration ammended by including the branch in your certificate thereby you can transfer goods to branch against a challan memo and no vat will be applicable on such branch transfer.
The sale transaction in such case will happen when an invoice is issued at the branch after stock transfer.
soumitra basu
(Expert) 19 May 2010
It shall depend upon the agreement whether this particular transaction shall be treated as sale or stock/branch transfer. If this transaction is from principal to principal basis, in that case it shall be deemed to be a sale. Otherwise, it may be treated as stock/branch transfer. The agreement is important.
