inter unit stock transfer

[Asked by Guest]

Kindly advice me if I buy hospital drugs and consumables in one state and transfer it to other state as an inter unit tranfer and if I am not registered with sales tax. Then what is the procedure and can I do this?

[YAGAY and SUN]

Dear Sukhbir,

Normally, Hospitals are registered with VAT Authorities since, during the course of treatment they do sell various articles under deemed sales provisions, directly or indirectly. If you have not crossed the threshold limit for getting the registration under West Bengal VAT Act, then, you may transfer these goods on an challan stating that these goods are VAT paid in the State of West Bengal and are being transferred to your own hospital/unit and no Input Tax Credit has been availed on these drugs and consumable. Please also enclosed the photocopies of the purchase bills along with the challan issued for transfer of drugs and consumables.

Please also get the clarification from the jurisdictional VAT Authorities under WBVAT Act before transferring the goods from one state to other.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Inter-unit stock transfer: use challan declaring VAT paid and no input tax credit, attach purchase bills and seek VAT clarification.
Where registration thresholds are not met, transfer hospital drugs and consumables on a challan stating the goods were VAT paid, are being moved to the transferee's own unit, and that no Input Tax Credit has been availed; enclose photocopies of purchase invoices and obtain clarification from the jurisdictional VAT authorities before transferring across states.