Liablity of vat

This query is : Resolved

prateek gupta (Querist)
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22 November 2011 Hello Friends,

I have sent goods to my other branch in U.P
from Delhi. Please tell me whose liability is to pay VAT whether it is of branch or Head office.

Thanks

PRATEEK GUPTA

Shaleen Shah

Shaleen Shah (Expert)
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24 November 2011 Any inter-state movement of goods between branches would normally be a "Branch Transfer" where the receiving branch in the other state issues a F-Form under the CST Act to the dispatching branch. In case of Branch Transfer, there will not be any VAT liability if duly supported by the F-Form. If the receiving branch fails to give the F-Form, then the liability will arise for the dispatching branch and the transaction will be treated as an inter-state sale.

prateek gupta

prateek gupta (Querist)
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24 November 2011 when the goods are sold by the receiving branch then whose Liability is to pay VAT?

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