04 September 2012
OUR FACTORY IS LOCATED AT HARYANA AND WE WANT TO SELL OUR PRODUCT TO OUR CUSTOMER AT KARNATKA THROUGH ESTABLISH A OUR DEPOT IN KARNATKA. WE WANT TO SEND OUR EXCISABLE GOODS FIRSTLY TO OUR DEPOT AND THEN FURTHER SELL TO OUR CUSTOMER FROM KARNATKA DEPOT WITH SAME MATERIAL. PLEASE SUGGEST THE WHETHER CST WILL BE CHARGED TO TRANSFER TO OUR DEPOT TREATED AS PREDETERMINED SALE OR IT WILL BE ASSUME STOCK TRANSFER. MATERIAL WILL BE SELL TO ONLY ONE CUSTOMER FROM KARNATKA.
06 September 2012
Good question. There are number of decisions both favourable to assessee and also to the department.
Option No.1- a) You have to send the materials in bulk and not the exact quantity. b) The branch in karnataka has to receive the stock and then to move the material to the buyer keeping some balance stock in the depot. c) The material should not be supplied directly to the party. d) Minimum two three parties you have to keep and single party supply will lead to cst sales under the guise of stock transfer. e) While preparing the stock transfer documents do not mention that please supply to x.... f) Mention in the documents as "stock transfer against Form F".
CAclubindia
