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suppose one dealer has hq at mumbai and branch office at
delhi. the dealer make stock transfer of his product from
mumbai to delhi by rail and sell product to his party on
arrival at delhi after raising invoice on VAT. He deliver
the product to party's godown directly from railway siding
without sending the material in own godown. Is it branch
stock transfer or inter state sale under cst?
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Answer Posted / kolagatlaramireddy
IT IS EXACTLY INTER STATE SALE.THOUGH IT WAS INTENDED TO INTER
BRANCH TRANSFER THE SALE TO THE PARTY WAS HAPPENED AS PER THE
ACT IT CAN BE TREATED AS SO.
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AS PER THE AP VALUE ADDED TAX ACT 2005 LEAFLET 14 VIDE ITEM (1)(A) IF AN AGENT SELLS ANY GOODS ON BEHALF OF THE AGRICULTURIST PRINCIPAL HE IS UNDER NO OBLIGATION TO OBTAIN REGISTRATION UNDER THE AP VAT ACT. BUT AFTER ADDITION OF SUB SECTION 10(a) UNDER SECTION 4 WHAT IS THE POSITION OF AGENT WHO SELLS GOODS ON BEHALF OF AGRICULTURIST PRINCIPAL. IS IT NECESSARY FOR HIM TO OBTAIN REGISTRATION UNDER THE APVAT ACT. PLEASE CLARIFY?
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