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Vat- query
Dear All,
Pls help me the following issues:-
A company registered in Kerala has branch in gujrat. If Gujrat branch purchased locally after paying VAT in Gujrat suppose to sell in kerala customers. Here there is no stock transfer as Gujrat branch will sell goods kerala customer directly.
Pls let me know whether we need collect CST for the sale to kerala. As it leads to huge tax payment like Gujrat VAT, CST while selling to kerala and finally local VAT in kerala has to be paid by kerala customer.
Thanks &Regards
Shabeer
Replies (2)
Hello shabeer
The sale from Gujrat to Kerala attracts CST, but in your case though the company is same it would be trated as stock transfer & nil CST against Form "F".But the input VAT on purchase at your Gujrat branch has to reverse 2% against every sales to kerla branch.
no it is not stock transfer as our Gujrat branch purchase in their name and sell to customet directly. no way connected with head office Kerala
CAclubindia
