Vat implication

Hi,

The relationship between the company & Franchisee plays an important role. If franchisee is an agent of the company, transfer of goods to agent is not a `sale` at all.

As far as Karnataka is concerned, the liability to payment VAT in case of such sales (through agents) will be on the agent.

However, if the transaction between the company & Franchisee is on principal-to-principal basis, there can not be any implecation on company for sales effected by the franchisee.

You can not do stock transfer to frachise unless he is registered. To establish stock transfer as a seller you need obtain Form F from the frachise which he can provide only if he his registered.

Regards

Dayananda

The requirement of Form-F arises only if there is transfer to other State. For transaction within the State, Form-F will not come into picture.

agree with Raju ,  f form is required for interstate

first you have to register for VAT. unless you register, how could you pay VAT? now there are 2 modes of registration: full VAT mode and composition scheme. if you register under full vat mode, then only you have to pay the original vat liability.but if you choose composition scheme (cs), you have to pay 1% on your sale. in order to get cs, these are the conditions:. 1) Dealer whose annual total turnover is between 2 lakh and 15 lakh. 2) Dealer who executes Works Contract. 3) Dealer who is either a hotelier or restaurateur or a caterer and or a dealer running a sweatmeat stall 4)Dealer producing granite metal and other than granite metal by using stone crushing machinery if your sell crosses 15 lakh limit, you have no choice but to register under full vat.if you already in cs and your sell is more than 15 lakh, then you will automatically fall in full vat mode. so, first you get registered. generation of bills/invoice is an easy method to prove your sell.it has nothing to do with turnover limit.