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Stock transfer

deepak goyal (Apprenticip) (29 Points)

22 May 2010

Respected to all,

what is the procedure of TAX on Stock transfer when we purchase local goods and transfer it to another unit out of State agst F form

please reply as soon as possible

urgent

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2 Replies

deepak goyal (Apprenticip) (29 Points)
Replied 22 May 2010

what is the effect on Gross turnover of the Company as well as on the state turnover

please answer as soon as possible

Thank u

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RAJU (LEARNER) (1089 Points)
Replied 22 May 2010

Dear Deepak,

As far as Karnataka as concerned, Input VAT equal to 2% in proportion of stock transfers as compared to total transactions (stock transfer+taxable sales) needs to foregone.

Suppose Input tax (at 4%) is Rs.100 and dealer has effected stock transfer of 2000 and taxable sales of Rs.2000, the ineligible input tax will be as below;

2% of 100 will be Rs.50. Out of this, a sum equal to % of stock transfers to total transactions needs to be foregone (Rs.50/4000 (total transactions) * 2000 (stock transfers)) = Rs.25 (Ineligible input tax for total input tax of Rs.100).

Hope the above clarifies your doubt.

Regards/Dharmaraju