STOCK TRANSFER

[Asked by Guest]

DEAR SIRS, I AM A CONSIGNMENT AGENT FOR A HYDERABAD BASED COMPANY DEALING WITH FMCG

PRODUCTS WE SUPPLY THE PRODUCTS TO OUR BRANCHES AS STOCK TRANSFER, AND SOME OF THE

BRANCHES NOT SENT US THE SALES REPORT, PLEASE LET US KNOW IF THERE IS ANY TIME LIMIT

FOR PAYING TAXES FOR STOCK TRANSFER

[Ganeshan Kalyani]

Being consignment agent if are registered under VAT registration of the your FMCG as an additional place of business then the movement of goods would be termed as stock transfer and tax will not charged provided form F is in place. Further after receiving the stock you are selling to customers then in the month of sale the Vat collected on such sale will become payable in subsequent month within due date.

[YAGAY and SUN]

Form F is required to be issued on monthly basis.

AI Summary

Stock transfer: Form F requirement and VAT payable upon subsequent sale by consignment agent within the due date.
Interbranch movement by a consignment agent registered as an additional place of business is treated as stock transfer and not immediately taxable where the movement is supported by the prescribed documentation, notably Form F. VAT becomes payable when the agent sells the goods to customers, with tax due in the month of sale and remitted by the statutory due date.