Stock transfer for work contract
Hasan
(Querist) 09 January 2016
This query is : Resolved
We have got an order from Kolkata Government Authority (They can’t give us WAYBILL OR FORM C) , We are register Manufacturer under VAT Uttar Pradesh,
As per WBAT Act, VAT to be paid over there on the basis that property is created under W.C in the state of West Bengal.
1. Kolkata Government will deduct WCT TDS from Payment to be made to us
2. We will get registered under WBVT Act
3. We want to stock transfer from U.P to Kolkata for this WC
4. We do not have any permanent establishment in Kolkata earlier to this. After registration also we will not have any fixed establishment over there.
5. We have produced major portion of material in our name
6. We will procure remaining portion of material directly in Kolkata against FORM C (Kolkata Branch issue Form C to Parties)
7. We have to transfer goods in our name from UP to Kolkata
8. Whether we should charge CST @ 12.5% on material movement or against Form F
9. We understand that Form F Can’t be issued if there is pre-existing contract.
10. In case of WC anyone can’t transfer material on ahoc basis, but will transfer only that material required for the WC
11. In conclusion of above whether we can transfer material for interstate material against form F to avoid double taxation
R K JAIN
(Expert) 11 January 2016
You can transfer against F Form if the same goods are not procured for the works contract to be executed in Kolkatta.
Hasan
(Querist) 11 January 2016
Sir Kindly give a any rule reference or case law under CST Act. Please Please
R K JAIN
(Expert) 14 January 2016
Read my article on Stock transfer versus inter state sale posted on lawyers club website.
Hasan
(Querist) 14 January 2016
THANK YOU SIR FOR HELP BUT IF WE SEE THE AMENDED SECTION 2(G)(ii) CENTRAL SALE TAX 1956 11.05.2002 what is your view on this
“sale”, with its grammatical variations and cognate expressions, means any
transfer of property in goods by one person to another for cash or deferred payment
or for any other valuable consideration, and includes,–
(i)
a transfer, otherwise than in pursuance of a contract, of property in any
goods for cash, deferred payment or other valuable consideration;
(ii) a transfer of property in goods (whether as goods or in some other form)
involved in the execution of a works contract;
(iii) a delivery of goods on hire-purchase or any system of payment by
instalments;
(iv) a transfer of the right to use any goods for any purpose (whether or not for
a specified period) for cash, deferred payment or other valuable consideration;
(v) a supply of goods by any unincorporated association or body of persons to
a member thereof for cash, deferred payment or other valuable consideration;
(vi) a supply, by way of or as part of any service or in any other manner
whatsoever, of goods, being food or any other article for human consumption or any
drink (whether or not intoxicating), where such supply or service, is for cash,
deferred payment or other valuable consideration
