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TREATMENT UNDER VAT

(Querist) 09 July 2010 This query is : Resolved 
I am regd dealer in Punjab and want to sent goods on consignment basis in Punjab as well as out of state and would pay commission to consignee. Now my question when i have to pay vat on the same when i transfer the goods to consignee or when actual sales take place at consignee's end and can i sent goods to consignee as stock transfer and book sale when i get sales report from the consignee and pay tax accordingly.How the same can be booked in case of goods sent outside state.Can i treat same as stock transfer or some consignment not to be sent. And whether the regd person outside the state selling the goods would have to pay vat and can such person issue me the C-form for the goods sent on consignment.
AMIT BAJAJ ADVOCATE (Expert) 11 July 2010
In this case it will be a consignment sale and vat will be payable at the time when you send the goods to the consignee whether he is inside the state or outside the state.

However if consignee is selling the goods at a premises which is the branch office of your firm whether outside the state or inside the state, it will be termed as stock transfer and no vat will be payable on such stock transfer.


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