Consignment agent

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Pravin Sharma (Querist)

01 August 2011 Sir

Can you tell me who is responsible for payment of VAT when the goods are received by the consignment agent form another state and whether consignment agent is require to make bill in his name in consignment agent business.

Please explain

Thanks and Regards
Pravin Sharma

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

01 August 2011 Consignment agents are not necessary to pay VAT. they are only Agent for the goods to sell. So bills need to be raised by the principal seller to customer

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Pravin Sharma

Pravin Sharma (Querist)

02 August 2011 Sir,

So the principle seller has to get register under VAT of the respective state to pay VAT. Please Clarify....

Thanks and Regards
Pravin Sharma

CS Bijoy

CS Bijoy (Expert)

02 August 2011 Agreed with Ramesh Ji

In agency business agent is not responsible for any liability unless the liability create by breach of contract by the agent.

Yes Principle Seller is required to Register.

Pravin Sharma

Pravin Sharma (Querist)

07 August 2011 Dear All,

Please Clarify as per my knowledge from other sources....consignment agent can pay VAT...it is not compulsion to Principle to register in another state.

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