Jayanta Bandyopadhyay 25 February 2025

Common warehouse and gst

Exclusively closely held Public Ltd Co and LLP are run by one family. Co brings Tea leaves from Assam to Kolkata and sells it to LLP for export. There is single warehouse in one building. So sale takes place when stored in warehouse and LLP arranges shipping Bill in own name and Cargo moves out.How to satisfy GST Dept, as there is no physical movement post sale from Co to LLP. Directors of Co take Partner's hat. Common decision-making centre. Kindly guide

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 26 February 2025

To satisfy the GST department, you'll need to demonstrate that the transactions between the Public Ltd Co and LLP are legitimate and comply with GST regulations.

Here are some key points to consider: - *Maintain Clear Documentation*: Ensure both entities maintain separate financial records, including invoices, ledgers, and bank statements.

Have a well-documented sale and purchase agreement outlining the terms and conditions of the transaction.¹ - *Establish Arm's Length Transaction*: Demonstrate independent decision-making processes, despite common ownership. Ensure separate GST registrations and filing of returns independently. - *Clarify the Sale and Delivery Process*: Clearly establish the point of sale as the warehouse, where the goods are stored and sold to the LLP.

Maintain records of the shipping process, including cargo movement and export documentation. -

*Declare the Warehouse as an Additional Place of Business*: If you supply goods from the warehouse, you'll need to declare it as an additional place of business..

Dr. J C Vashista (Advocate ) 26 February 2025

When there is transaction of goods between the company and LLP, it is liable to be taxed, despite the fact that there is no physical movement of subject goods.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 26 February 2025

To satisfy the GST department, you'll need to demonstrate that the transactions between the Public Ltd Co and LLP are legitimate and comply with GST regulations.

Here are some key points to consider: - *Maintain Clear Documentation*: Ensure both entities maintain separate financial records, including invoices, ledgers, and bank statements.

Maintain records of the shipping process, including cargo movement and export documentation. -

*Declare the Warehouse as an Additional Place of Business*: If you supply goods from the warehouse, you'll need to declare it as an additional place of business..

Jayanta Bandyopadhyay 26 February 2025

Many thanks,Sirs.

While auction price is taken as base ALP, one point is confused. Directors of Ltd Co take hats of Partners in LLP. A total commonality in 2 decision making centers .Then how to demonstrate independence and free of bias. Tax angles of entities may be exposed

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