Stock transfer

[Krishna Kumar]

Sir,

We have a manufacturing unit at Alappuzha and a sales depot at Mumbai. We would like transfer goods from Factory to depot .Our Marketing staff takes orders from Maharashtra. We would like to raise invoices for the transferred goods from Maharashtra. Kindly advice the procedure in detail. right from Stock transfer.

Thanking you

Krishna Kumar

AI Summary

Guidance on Tax Implications for Stock Transfers: VAT/CST Exempt, Excise Duty Applicable; Registration and Invoicing Required. A manufacturing company seeks advice on the procedure for transferring goods from its factory in Kerala to a sales depot in Maharashtra. The discussion involves the applicability of VAT, CST, and excise duty on such transfers. It is clarified that stock transfers do not attract VAT/CST, but excise duty is applicable. If customers are predetermined, CST may apply. The depot must be registered under sales tax, and invoices should reflect stock transfers. The valuation for excise duty should be based on the price at the depot at the time of removal from the factory. Legal precedents and procedural guidelines are discussed to support these points.