Inter State sale Branch Transfer
The basic condition of inter-State sale is that there should be a sale. If an assessee sends goods to his branch in other State, it is not a sale as he cannot sell to himself. Likewise, if a dealer sends goods to his Agent in other State who stocks goods on behalf of the dealer, it is not a sale. These transactions are popularly known as `Branch Transfer’ or `Stock Transfer’.
Goods are dispatched to branch/ consignment agent in other State and then these goods are sold from the branch, depot or place of consignment agent. However, if the movement of goods is occasioned on account of sale, the movement will treated as inter-State Sale. In other words, if the goods are transferred due to existing Purchaser Order, then it will be treated as inter-State sale and taxable.