Consignment Sale

[Former Member]

Hi,

I have a scenario in which material is moved from manufacturing plant (Gujarat) to consignment stockiest (Delhi). So material is moved by consignment fill up process against proforma invoice. Now material is sold from stockiest by Issue process. While creating Sales Order of Issue, plant is still Gujarat whereas Stockiest is in Delhi. So CST is applied in this case. But actually material is sold locally from stockiest of Delhi, so VAT should be applied. How to apply VAT when plant is in Gujarat and Customer in Delhi..?

Regards,

Falgun

[Lakshmipathi]

As already indicated, consignment process will not work in this case. As you should be aware, in consignment process, tax will be applicable based on delivering plant only which means, in your case, it is Gujarat. In fact, ideally, this process will suit in case of exports where tax and duty are exempted.

To meet your requirement, you need to treat the stockist as a plant, do stock transfer from Gujarat to Delhi and from there, do normal sales process like sale order from Delhi plant, delivery and billing so that VAT will flow in billing.

thanks

G. Lakshmipathi

[Former Member]

Hi,

You are not seelting to direct customer, you are selling to customer(stockeist) based in delhi, so it should apply CST not VAT. If you want VAT to apply to customer, you need to do STO to Delhi plant then send consignment fill and issue so that VAT will be applicable.