Liability of vat/cst

This query is : Resolved

Pawan Agarwal (Querist)
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03 December 2011 Case 1.some material was purchased in gujrat but due to requirement of material at other project site some material transfer from Gujarat project site to Madhya Pradesh Project Site
Question

1.Whether i am requited to pay any tax for this transaction ?

2.Whether it is covered under stock transfer/branch transfer?

3. when goods are transfer from one branch to other is it necessary that both the branch is to be registered?

4.Can i treat this transaction as branch transfer even my madhya pradesh site is not registered as branch?

5.Please give Ref of Applicable section and clause to see the detail of this case?

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
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04 December 2011 1. You need not to pay any tax as the transfer was not pursuant to sales. Buyer and Seller should be separate persons and same person cannot sale himself.
2. Yes provided branch (MP) should furnished the declaration in Form F
3. Yes it is a mandatory requirement.
4. No, Branch should be registered otherwise it will not able to furnished the declaration specified in Point-3
5. Section 6A of Central Sales Tax Act.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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11 December 2011 Mr. P Agarwal,
If you are supplying all the required material for the Madhya pradesh site from Gujrat,then you need not register your MP branch. But, it becomes an interstate works contract of Gujarat registration.As Mr. Patkar has said you can avoid this tax by getting 'F' form MP branch after registration. Again tax liability arises in MP.Although it is not mandatory to register the MP works site either way you have to pay tax.
MJK

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