Dear Experts,
I have a few queries regarding the taxation concept in consignment sales.
We have executed the consignment sales by fill up and subsequently consignment issue.
The issue is India specifc. Both the delivering plant and customer ( consignee ) are located in same state ( Say Maharashtra)
When the invoices are issued in Consignment issue process, VAT @ 5 % is payable/calculated in invoice. I have a few queries on the same.
: Whether the Consignment should have TAX-CST / VAT. Or is there any specification for the consignment sales since it is a intrastate transaction and what should be tax structure in interstate consignment sales?
: When the consignee has sold the goods and invoiced, the tax have been calculated /collected so when we raise the invoice to our consignee agent, how should we consider the tax for this invoicing?
: What is the main difference ( if any) in taxation setting for consignemnt process.
: How should it be reflected in accounting?
Kindly revert accordingly.
Many thanks in advance.