sale or stock transfer

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KAPIL (Querist)
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15 December 2010 If an assessee has 2 business and one of them dealing in sale of a commodity and other is hiring the same commodity and some of the goods from Business1 tansherred to business 2 for hiring. Is it a stock transfer or sale and what is its treatment? Whether the assessee is required to be registered business 2 as branch under VAT Authority ? Whether CST will be charged or not?

Amit Bajaj

Amit Bajaj (Expert)
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16 December 2010 one person cannot sell his own goods to oneself. Therefore transfer of goods from one branch to other wont be a sale. But the production of F form is compulsory to prove the interstate branch stock transfer, Since the branch dealing in hiring is not registered, the F form will not be available to prove stock transfer to branch, hence CST will be payable.