branches of consignment agents

[Asked by Guest]

Dear Sirs,

I am a consignment agent for a company and I am having branches in my state(under my TIN)

they are all depositing amount directly to my company (consignor) whether it is allowed

as I am receiving stock on the basis of Stock transfer only not on sale basis.

please guide me (pls send the reply to my mail id)

thanks

AI Summary

Consignment agent payments: direct remittance to consignor raises agency and tax reporting concerns unless agent records sales and logistics.
Whether purchasers may remit proceeds directly to the consignor when a local consignment agent holds and sells goods received by stock transfer; occasional direct deposits for expenses are acceptable, but regular remittances to the consignor may indicate the consignor is acting as seller. If the agent records sales in VAT returns, pays taxes, receives goods via waybills, and manages storage and dispatch, direct deposits are less problematic. The critical issue is who effects the transfer of goods to the buyer and how sales and taxes are reported.