Procedure - Movement of goods from Delhi to Maharashtra

[madhavvan n]

Company “ A” is situated in Maharashtra and has taken VAT registration in Maharashtra state. It has purchased goods from a delaer in Delhi who has charged local delhi VAT and these goods are given to the same dealer for future use. ( without any consideration free of cost) . the owner ship in goods rest with company “A”. Now “A” company desires to bring the goods to Maharashtra to another dealer in Maharashtra. Without any consideration What is the treatment / procedure under law for the movement of goods from Delhi to Maharashtra Company “ A” does not have any VAT registration in any other state. Will it be different if the goods are transferred for some value. Can this transaction of movement of goods from Delhi dealers location to Maharashtra dealers location be treated as a stock transfer. In general if a company has only a single VAT registration in a state and would like to send the goods to various states with or without any consideration will it have any VAT / CST implications

[Rama Krishana]

Sale between A to another person in Maharashtra is making the query more complex that is too for without consideration. In my view, it is the movement of goods from Delhi to Maharashtra is taxable event. When goods are kept by the dealer in Delhi (seller), there is no movement of goods, since there is no movement of goods, delhi dealer may be advised to charge VAT only at the time of movement of goods from Delhi to Maharashtra so that this controversy may be resolved. Treating the movement of goods from Delhi to Maharashtra can be trated as stock transfer where the ownership remains with the delhi dealer which is not in the present case.

AI Summary

Interstate movement of goods is a taxable event and VAT falls due when goods are transported between states. The movement of goods from Delhi to Maharashtra is the taxable event; when goods remain with the Delhi dealer there is no movement and VAT may be charged only upon transportation to Maharashtra. A stock transfer characterization applies only if ownership remains with the transferor, which is not the present fact, so VAT chargeability arises on movement despite Company A's single-state registration.