Anybody please explain me what is Branch Transfer and its
implications with example.
Answer Posted / b.padma kumar
Under VAT branch transfer is not taxable. But under Excise,
it is taxable. Because, as per excise laws, excise duty is
payable when goods are removed from factory. Sale is one
event where goods are removed. An invoice is prepared for
calculation of excise duty. Here Customers account is
debited and sales and duty accounts are credited. But when
goods are transfered to a branch for further sale, even then
an invoice is to be prepared for calculating excise duty, as
this is also removal of goods with in the meaning of excise
act. When actual sale takes place from branch again sales
entry is passed for collecting VAT. Thus sales account get
duplicated.
To over come this, first prepare sales entry for calculating
excise duty and preparing of the rule 11 invoice when goods
are transfered to branches. On the same day reverse this
entry with only the sale value and not duty value. If you
are using Tally software, this reversal is only to change
the godown - From excisable godown to some other location.
When actual sale takes place show that the goods are removed
from that godown and not from excise godown.
Is This Answer Correct ? | 23 Yes | 6 No |
Post New Answer View All Answers
Calculate debtors at the end of the year? debtors-50000, bad debts-2000, discount allowed-1000, 5% on bad debt, 2% discount allowed?
How can deduct tds from auction cases (timber)
should pranav mukherjee has done things good, by giving burden to vodafone a huge tax liabilty.....it will not affect our fdi???
What are the streamlined sales and use tax agreement?
Can we use ST-38 outward form for a sale of Rs-100000/- with in the state i.e haryana
Should WCT deduct on Invoice where VAT charged but service tax not charged as service tax is not applicable to concern vendor (vendor gross income under 10Lacs)?
Dear Sir, I am working in account department. I want to know, Why service tax rate is change in every type of service. For Example - Rent Bill Service Tax Rate - 10.30% Taxi Bill - Service Tax Rate - 4.12% Why it change
what is vat adjustmant?
should we can take modvat benefit any time or they have some limit time to take input benefit claim?
What is the general format for a consolidated file extension? It is showing invalid file format? So how to solve the error? How to correct the file format? Help me how to know the general consolidated file format like is it tan no_finan.Yr-quarter-type.Tds is this format correct one? Last time i have found the extension as .Csi is it correct?
professional tax rate
what is capital account? how to manage it? what is the process?
HOW TO FILE RETURN- SALARIED PERSON GETTING SALARY 6 MONTH FROM ONE & 6 MONTH ANOTHER COMPANY
If we are placing the order in amazon on behalf of the customer who is ordered from other e-commerce sites and the goods is directly billed to the customer address from the amazon sellers and for the same we are receiving some profit at that in our books of account what entries need to be passed...?? do i eligible to get the ITC on the GST amount paid..??
I AM INTO AN EXPORT COMPANY MANUFACTURING GARMENTS. I AM PURCHASING AN INTERSTSTE ITEM AND PROVIDED FORM H NOT C. COULD I BE ABLE TO GET ANY EXEMPTION FROM TAXATION AND WHEATHER I HAVE TO CLOSE MY SALES TAX ACCOUNT FOR PROVIDING FORM H, AND IF AGAIN I COULD BE GET ANY EXEMPTION FROM FORM C ISSUING FOR THE SAME COMMODITY AND SAME SUPPLIER.