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

Place of removal determines excise valuation for stock transfers; depot transaction value governs duty liability on removal.
Stock transfers to a depot invoke central excise liability with the depot as the place of removal, requiring duty assessed on the depot's prevailing transaction value at the time of removal, including transport and handling to the depot where applicable. VAT/CST is generally chargeable on subsequent sales from the depot, not on the transfer itself, but predetermined customer consignments may attract CST. Depots must be sales-tax registered, reverse proportionate input tax credit when required, and procedural mechanisms such as provisional assessment may be used pending ascertainment of depot prices.