Vat
This query is : Open
01 February 2012
In case a trading concern supply goods to a company registered in Delhi but having factory in U.P. Should it register itself in Delhi or U.P.
Moreover, if such firm gets registered in Delhi and opens a branch in U.P. and takes the sales tax no. of U.P., can such branch directly purchase from delhi in its own name so as to take advantage of VAT????
Please reply...
Varun Gupta
Moreover, if such firm gets registered in Delhi and opens a branch in U.P. and takes the sales tax no. of U.P., can such branch directly purchase from delhi in its own name so as to take advantage of VAT????
Please reply...
Varun Gupta
03 February 2012
No Vat Input tax credit is allowed on inter state purchase.
Message likes :
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03 February 2012
Thnx, but that was not my question. My query remains the same and is still unresolved. The query is as follows:-
A firm (partners in Delhi) is planning to supply goods from supplier located in Delhi to a company having registered office in Delhi but having factory in U.P. The following options are available with the firm:-
1. The firm can have its registered office in Delhi. In that case, the supplier shall charge VAT and the firm shall charge CST. Moreover, the firm shall claim VAT refund (excess of VAT over CST), receipt of which is very difficult. The advantage would be that all legal and taxation jurisdiction would be in Delhi.
2. The firm can have its registered office in U.P. The supplier shall charge CST and the firm shall charge VAT. In this case, the firm shall not be required to claim any VAT refund. But, all legal and taxation jurisdiction would be in U.P.
3. The firm can have registered office in Delhi but open branch in U.P. and do direct billing from branch.
Queries
A. The goods shall be deemed to be sold in Delhi or U.P.?? (since co. is having registered office in Delhi)
B. If option 2 is followed, is there an option with firm to have legal and taxation jurisdiction in Delhi?? (It would be beneficial for partners especially when case comes in scrutiny)
C. If option 3 is followed, can U.P. branch show purchase and sale in its own name so that it shall not be required to claim VAT refund??
D. Overall, which of the above options is best for the firm??
With Best Regards
Varun Gupta
A firm (partners in Delhi) is planning to supply goods from supplier located in Delhi to a company having registered office in Delhi but having factory in U.P. The following options are available with the firm:-
1. The firm can have its registered office in Delhi. In that case, the supplier shall charge VAT and the firm shall charge CST. Moreover, the firm shall claim VAT refund (excess of VAT over CST), receipt of which is very difficult. The advantage would be that all legal and taxation jurisdiction would be in Delhi.
2. The firm can have its registered office in U.P. The supplier shall charge CST and the firm shall charge VAT. In this case, the firm shall not be required to claim any VAT refund. But, all legal and taxation jurisdiction would be in U.P.
3. The firm can have registered office in Delhi but open branch in U.P. and do direct billing from branch.
Queries
A. The goods shall be deemed to be sold in Delhi or U.P.?? (since co. is having registered office in Delhi)
B. If option 2 is followed, is there an option with firm to have legal and taxation jurisdiction in Delhi?? (It would be beneficial for partners especially when case comes in scrutiny)
C. If option 3 is followed, can U.P. branch show purchase and sale in its own name so that it shall not be required to claim VAT refund??
D. Overall, which of the above options is best for the firm??
With Best Regards
Varun Gupta
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