In MP a Company say ABC having different Divisions in various location (Within MP). Suppose ABC transfers some goods to other Divisions it will be treated as Sales or Stock Transfer. Also inform if any circular available in this regards.
5 Replies
PARV
(TAX ASSISTANT.)
(202 Points)
Replied 21 December 2013
first tell about the processing of books of accounts whether jointly processed or individually
i.e.whether single books of accounts are maintained or seperate books of accounts are maintened by its branches.
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 21 December 2013
Books are maintained separately, Balance Sheet is consolidated
PARV
(TAX ASSISTANT.)
(202 Points)
Replied 21 December 2013
it should be stock transfer not sale i.e. branch transfer, bcoz the entity cannot trade with itself.
it branches or divisions are its extended arms.
& for accounting pls refer to icai site...www.icai.org------>students----->bos board of studies----->FINAL-----> ACCOUNTING PAPER-1----->STUDY MATERIAL.......-----> AS-21 FOR CONSOLIDATION
Shrikant kulkarni
(Logistic Executive)
(37 Points)
Replied 24 December 2013
if co. transfer goods to cons. agent againt F form pls. provide a/c entry
V. Devananda Narasimham
(Advocate)
(248 Points)
Replied 24 December 2013
| Originally posted by : Deepak Tapse | ||
 |
In MP a Company say ABC having different Divisions in various location (Within MP). Suppose ABC transfers some goods to other Divisions it will be treated as Sales or Stock Transfer. Also inform if any circular available in this regards. |  |
Sir, In order to constitute a sale there should be transfer of property from one person to other for a valuable consideration. Here ABC company transfering goods to other divisions within the State of MP, shall be treated as local stock transfer. Form F is applicable only for interstate stock transfer as defined in Sec.6A of the CST Act. Unnecessary comments through this forum may be avoided. Thanks
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