branch sales

It is inter branch transaction.

O K but what about branch sales .Is it inckuded in head office turnover in Vat return

yes, it includes in the Gross turnover then it is reduced accordingly.

above explanation  is in respect to the head office.( the assessee)

Mr Ashutosh,

Depending upon the available 'fields' in Rajasthan VAT return' you may have show the turnover in that return.

However, such turnover (of branch turnover) will have to be indicated in your CST return in Rajasthan.

I hope you are aware that you need to obtain F declaration forms from your Orissa branch in respect of the branch transfer so as to claim deduction/exemption of the turnover from CST. 

sricojyp@gmail.com

In addition to discussion by my fellow members, i jus wanted to highlight that while branch transfer please take care that one to one correlation b/w branch transfer and final sale at orissa branch is not established. As in case the correlation is established then the transfers woud fall under ambit of pre-determined sale liable to CST. 

Mr Lamba,

Your input is quite interesting which also arises a doubt in my mind... I also recall how our Sales Tax authorities went to W.B from Orissa to a branch of a manufacturer in Orissa just to inquire what you have mentioned above. However, as I am not convinced with that, may we have an academic discussion in this regard?

Does a business not have freedom to do its transactions the way they like so long they comply with law? Suppose, the buyer wants that I should make only a local sale for availing input tax, cannot the vendor bring the goods on branch transfer to my state and then sell the same to the me? 

Best Regards.

Dear Mr Raomohan your view is quite practical, however, the athourities are revenue centered and in the aforesaid given transaction they always levy CST by considering the transfer as inter-state transfers.

Therefore, a manufacturer/ transforer if observes and adopt some basic precautions in mind then a strong case could be presented at time of assessment before athourities i.e. from both practical and legal perspective.