15 August 2011
Mr.Dharmesh Lad, You can actually sell your goods to a customer or authorise any other trader to,either within the same state or outside,sell on your behalf for some agreed commission.The second type is consignment sales.You have to send the goods on stock transfer authorising him to sell at certain rates.On such sales he will charge the VAT in the bills issued by him and pay to the department wherever he is.He will send you a list of invoices with the amounts received in detail,such as vat,freight,packing charges etc.Along with the list payment is also made by a cheque for the balance amount(ie after deducting the vat collected,expenses and commission. This settles your account and you need not pay any vat again. MJK