Sameer (Chartered Accountant) (202 Points)
06 September 2011Dear Friends,
One of my client has two manufacturing units/Factories at same location. They have only one Centralised Store which is situated in one of the unit (Unit-I), which also serves the requirement of other unit (Unit-II).
Now my query in this regard, whether the store items issued to other unit (Unit-II) shall be treated as sale and accordingly liable to VAT?...Please help me out.
Regards
Sameer.
praveen
(Chartered Accountant)
(6971 Points)
Replied 06 September 2011
No there should not be any incidence of VAT. Levy of VAT gets fastened only on sale. Here there is no sale hence, no levy. However, if both the units are controlled by two difference companies or firms or in VAT terms if both the units have different TIN then it will be a sale.
Anywayz it does not make sense of charging same as output and taking the same as input.
Join us on Facebook https://www.facebook.com/pages/Sampoorna/184315778304697
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 06 September 2011
Inter Unit Transfer is excempt from Vat. Get From-I, if any, provided by state government for IUT transaction which will issued by transferee to the transferor and thus transferor will get excemption against this transaction.
ONLINE STORE :
====( https://www.fullmalls.com )=====
The website wholesale for many kinds of fashion shoes, like the nike,jordan,prada,****, also including the jeans,shirts,bags,hat and the decorations. All the products are free shipping, and the the price is competitive, and also can accept the paypal payment.,after the payment, can ship within short time.
free shipping
competitive price
any size available
accept the paypal
jordan shoes $32
nike shox $32
Christan Audigier bikini $23
Ed Hardy Bikini $23
Smful short_t-shirt_woman $15
ed hardy short_tank_woman $16
Sandal $32
christian louboutin $80
Sunglass $15
COACH_Necklace $27
handbag $33
AF tank woman $17
puma slipper woman $30
====( https://www.fullmalls.com )=====
CAclubindia
