Consignment stock transfer
KHEM VERMA
(Querist) 27 November 2013
This query is : Resolved
I own PREMIER GALLERY, a franchisee (consignee agent) of Koutons ( Consignor) in Noida UP.
The merchandise was sold on Koutons TIN No of UP ( Tin No ...A),as per agreement.We used to get commision on turnover. All sales were computerised and it was the liability of the Koutons to look after UPVAT matters.
The Consignee Stocks were in our custody but were property of Koutons and we use to sell the merchandise on rates decided by Koutons and deposit the sales proceeds to Koutons.
Due to difficulties in operations, Koutons( Tin No ...A) delivered/trasferred the balance stocks (in our custody),lying in the premises to PREMIER GALLERY (us) ( Tin No ...B) on the basis of modified agreement which permitted us to sell merchandise on our (Tin No ...B). No F form was issued.The ownership of the goods remained with Koutons, and there was no movements of goods, & they remained in same shop only.
The method of sales remained same except the Tin No. The goods received thereafter were received on consignment transfer against F forms etc of consignee.
Is any Vat applicable on consignment stock transferred within same premises (same state).
R K JAIN
(Expert) 27 November 2013
Tax has to be paid by your firm B if the tax is not paid by kuotons.
R.K Nanda
(Expert) 27 November 2013
consult tax lawyer.
C. P. CHUGH
(Expert) 28 November 2013
The moment goods were transferred from TIN-A to TIN-B in the same state, liability to pay tax is fastened on TIN-A. TIN-B is however entitled to claim credit for input tax.
