Liability of vat - consignment sale, VAT + CST

[deepak gandhi]

A is a direct seller as well as sells goods on consignment is consignment sales to be included as total sales in A's books of accounts and is it liable for vat, and is it to be considered as turnover for purpose of tax audit under income tax

Posts / Replies

[Subhash Majumdar]

yes this should be considered as turnover for the purpose of tax audit under the income tax act u/s. 44(AB) because consignment nature of purchase & sales is also part of trading and this traiding may be raised profit or loss but separate trading account for consignment should be prepare & part of profit or loss on consignment will be shown on Profit & Loss Account Credit side. Due to reason if the organisation face loss on other business then such loss can be set off from profit on consignment. As well as this is liable for VAT because there is no provision under the VAT Act. that consignment sale will not be treated as turnover, but if the goods are declared by Govt. as Declare goods in their Notification then consignment sale will not be treated as Turnover under the VAT Act.

[isha agarwal]

I have a little confusion regarding VAT charged on consignment sales  suppose we are sending the goods on consignment basis to other state in FORM 'F' then we are not required to pay CST n is VAT chargeable, If then provide me with reasons.