Hi Folks
Can anybody give a brief on merits/demerits on Predetermined Sale stock transfer..
How to avoid if already it happened???
Plz share your thoughts...!!
Chandra Shekar (Asst Manager) (27 Points)
06 July 2011Hi Folks
Can anybody give a brief on merits/demerits on Predetermined Sale stock transfer..
How to avoid if already it happened???
Plz share your thoughts...!!
RAJU
(LEARNER)
(1089 Points)
Replied 06 July 2011
Hi,
As per the provisions of CST Act, a transaction is considered as Interstate sale, if the sale has occasioned movement from one state to another....... . Hence, when goods are moved from one state to another for despatch to an identified buyer, it will be treated as sale (though those goods are moved to a branch in another State through which invoice would have been raised.)
By virtue of Section 3, the state from which the movements would have started will be the appropriate jurisdiction for levy of tax and accordingly CST is payable.
Unless, a detailed review is made by the department, they may not come to know about such transactions. Since you would have paid tax in the other State, issue Form-F and hope for the best.
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)