Hi, I'm from Tamilnadu state. I have few doubts on Consignment Sale concept. Please Clarify.
My Understanding:
Consignment sale is trading arrangement in which the consignor sends goods to the consignee for selling them on behalf his (consignor) behalf. The consignee gets commission for providing such arrangements to the consignor. Here the title owner of goods is the consignor.
Lets asssume A is the consignor co. & B is the Consignee Co.
A will send goods to B as Consignment Sales against FORM F. B will sell the goods to various dealers at the rates prescribed by the A. B will also charge Sales Tax on such goods sold and will deposit the collected sales tax with states' sales tax revenue department.
Questions (where Turnover is above 1 Crore):
01. Since B is raising Invoice on behalf of the A, collecting taxes and depositing it, Is B liable to VAT Audit under TNVAT?
02. When the purchase and sale belongs to the consignor, is B's books liable to Tax Audit?
03. When the purchase and sale belongs to the consignor, do B need to file the trading account details in Income Tax's ITR Return?
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