Double taxation

This query is : Resolved

GANGADHARAN (Querist)
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13 November 2013 Dear All.

Kindly advise us any solution for the below query.

1. We are purchasing locally and the same item will be sold through stock transfer to other state branch or CST billing.

2. Is there any way to avoid double taxation. if we go for stock transfer, we can't take input tax credit, otherwise double taxation input purchase and CST

BEST REGARDS

G. GANGADHARAN

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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13 November 2013 You can do stock tansfer of goods and sell with VAT in other state. For stock transferrred goods only 2% of ITC available has to be reduced. If you can avail ITC @5.5%,after doing stock transfer you can avail only 3.5%.It means the same thing if you sell to your branch against C form.For stock transfer F forms are to be issued by the branch....mjk