1.Interstate purchase of goods AGAINST Form C Rs. 10000. CST rate applicable obviously is 2%. Now we transfer all these goods to our branch in OTHER state.
2.Interstate purchase of goods AGAINST Form C Rs. 10000. CST rate applicable obviously is 2%. Now we transfer all these goods to our branch in OUR state.
3.Interstate purchase of goods WITHOUT Form C Rs. 10000. CST rate applicable will be VAT rate in the state of seller say 12.5%. Now we transfer all these goods to our branch in OTHER state.
4.Interstate purchase of goods WITHOUT Form C Rs. 10000. CST rate applicable will be VAT rate in the state of seller say 12.5%. Now we transfer all these goods to our branch in OUR state.
5.Local purchase of goods Rs. 10000. VAT rate applicable in our state is 12.5%. Now we transfer all these goods to our branch in OUR state.
6.Local purchase of goods Rs. 10000. VAT rate applicable in our state is 12.5%. Now we transfer all these goods to our branch in OTHER state.
I know what will be the entries at the time of purchase in all above 6 cases.
What I need to know is what will be the entries at the time of branch transfer in all above cases and how will we deal with the CST/VAT (paid on these goods at the time of purchase) during branch transfer.
I belong to Punjab and the relevant Act is Punjab Value Added Tax Act, 2005.
10 June 2014
generally, in case of inter state branch transfer or consignment to his agent, dealer have to reverse ITC @ 4% or lower if rate is lower than 4% in state for commodity. you must see the state vat act
12 June 2014
in cases where CST purchases has been made, no ITC to be reversed, since you didnt avail any ITC at the time of purchases made. simply ur branch account will be debited and inventory will be credited. in cases, where VAT purchases and ITC availed by you,
Branch Acc Dr (Invetory amount + VAT reversal) To Inventory To VAT recivable (@ 4% or whtever rate has been set in ur state VAT act)
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