Predetermined sale under stock transfer

This query is : Resolved

devender (Querist)
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11 December 2009 ABC CO. LTD. TRANSFERS HIS GOODS FROM DELHI TO TAMIL NADU AGAINST FORM - F AND SELLS ALL ITS SALE TO GOVERNMENT AGAINST ITS PRE-EXISTING PURCHASE ORDER. IS THIS TRANSACTION CORRECT.

CAN DVATO LEVIED CST AS CONSIDERING STOCK TRANSFER TO PREDETERMINED SALE.

Rasesh

Rasesh (Expert)
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12 December 2009 There are high chances that this would be covered under Predetermined Sales.

As a matter of precaution, you should unload the goods in Tamil Nadu. Keep atleast 10% in godown and balance 90% should be invoiced in TN.

Another option is that the date of the Purcase Order should be after the date of stock transfer to Tamil Nadu.