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Stock transfer of Goods to a branch or consignee is common in trade. Stock transfer can be both Intra & Inter state. A prudent businessman should plan the sales transactions with the option of stock transfers considering the VAT and CST provisions prevailing in the state. Planning such transactions is not a cakewalk as it involves many risks. Few of the points which should be considered in case of stock transfers along with the details of risk involved are discussed below.

INTRASTATE...

Under negative list based taxation, service tax is levied on service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) are supplied in any manner as part of the activity.  

Without getting into validity of ST levy on supply of food or drink, we have examined whether credits can be availed by hotel when it pays service tax on abated values of services?  

What is cenvat credit Scheme?

Cenvat scheme...

Discounts are very common in business. There are various types of discounts like trade discount, cash discount, quantity discounts, repeat customer discounts, end of year discounts etc. These discounts are allowed mainly to encourage customers to purchase more goods or to make early payments. It is necessary to understand the VAT impact on such discounts allowed.   

Though the VAT provisions are similar at large across the states, there are variances observed with respect to the...

VAT is a levy on sale of goods. For the purpose, it is usually the seller who would be held liable for payment of VAT. However, there are few exceptions created under the VAT provisions. As per Section 3(2) of KVAT Act 2003, in case there is a sale by an unregistered person to a registered dealer, then the tax shall be paid by such registered dealer who is a buyer of goods. Similarly exceptions are created with respect to collection and payment of tax especially in case of industrial...