VAT Billing and Stock transfer, VAT + CST

[Ashwani Mishra]

Hello Sir,

My question is if we purchased some generator parts on VAT billing in our branch haryana and my customer is in delhi. We have an another branch in delhi, so please confirm that can we do stock transfer of generator parts from haryana to delhi which is purchased on VAT haryana and bill to customer on full VAT on Delhi to Delhi.

Posts / Replies

[Pradeep Khatri]

Dear Ashwani,

In this scenario you would have to reverse the Input Tax Credit availed under Haryana VAT Act, 2003.  Your Branch in Delhi would provide you with CST Form F.  You can charge the VAT under DVAT Act, 2004 at applicable rate.  However, DVAT Department may treat it as preconceived sale if the customer is pre identified by you.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[rishi mohan]

We may bill from our branch from Haryana to Delhi. In this case we need to reverse the input credit availed in Haryana. No credit shall be allowed in Delhi. From Delhi you shall receive "F" form against the branch transfer. You may charge local Dvat from the customer in Delhi.