SOURABH ARORA (CA) (34 Points)
25 May 2012Hi,
I want to sell wooden handicraft from UP to Delhi,
It is exempt in UP but probably taxable in Delhi @ 4% (Please Confirm)
I want to know whether I should transfer it directly or create a branch in Delhi to minimise my tax keeping in view the provisions of CST & VAT?
Kindly Advise,
Thanks
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 25 May 2012
Dear Saurabh
If you stock transfer your wooden handicrafts to UP and then sell, then there would be a reduction in the set off for the purchases made by you in the state of delhi .
if you open a branch in UP then a separate TIN no needs to be obtained by you in the state of UP
Your decision will depend upon the volume and the amount of transaction
ok ...
SOURABH ARORA
(CA)
(34 Points)
Replied 25 May 2012
Hey I want to sell in Delhi not in UP so want to know whether to start a branch in Delhi or sell directly?
Its exempt in UP but taxable in Delhi.
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 25 May 2012
Dear Saurabh
If you stock transfer your wooden handicrafts to Delhi and then sell, then there would be a reduction in the set off for the purchases made by you in the state of UP .
if you open a branch in Delhi then a separate TIN no needs to be obtained by you in the state of Delhi
Your decision will depend upon the volume and the amount of transaction
You can also sell the goods from UP itself @ 2% CST by obtaining the C FORM from your customer
ok ...
Sheena Maheshwari
(ARTICLESHIP)
(240 Points)
Replied 01 June 2012
branch .
because if u transfer directly then cst 2% will be paid n no set off so ur cost will increase which would result in competitive diadvantage from local sellers in delhi
but if you create branch then vat on purchases will be available for set off after retention of 2%
note: 2% on purchases will be less than 2% cst paid on finished goods
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