ware house procedure

[SNEHAL SHAH]

sir,

we are group of companies  a ( gujarat ) , b(Chennai ) , c ( colcutta ) , d ( Bangalor ) . We have client differnt location all over india . All companies manufacturing product same .

My problem is that when we have supply material from gujarat to chenai delivery time ( lead time ) is very high . So we are some solution like we transfer this material to Chenai company & they will sale this material to chennai pary .

Please suggest what procedure we can adopt for this .

Regards,

SACHIN

 

AI Summary

Input Tax Credit availability: structuring inter-company transfers via branch affects VAT/CST treatment and compliance obligations.
Restructuring intra group supply by transferring goods between group entities across states triggers inter state tax treatment that can restrict the transferee's ability to claim Input Tax Credit, reducing profitability. Establishing a local branch so the transfer is effected as a VAT sale can preserve credit eligibility for onward sales but increases state VAT compliance; entry tax implications in the destination state must also be considered.