Intercompany sales vs intercompany stock transfer

[former_member1042017]

Hi,

Wat is the main differences between

Intercompany sales vs intercompany stock transfer.

More over what are the taxes applicable (India) in both.

In what case VAT/CST will be aplicable and in what case it will not be applicable?

Regards

G A

[former_member550050 · Accepted solution]

Hi

Imagine this scenario

There are 2 company codes,2 sales orgs and 2 plants entire 2 set ups one in UK and another in INDIA

Company code UK and INDIA

Sales orgs UK and INDIA

Plants UK and INDIA

Now For a customer in INDIA and the sales order is registered in Sales org INDIA if the the goods are shipped directly to this customer in INDIA from plant UK which is assigened to company code UK then it is intercomapany sales

Intercompany sales means plant will directly sell or supply to end customer

Now after registering or taking this order from the customer in INDIA and if you transfer the stocks from UK plant to INDIA plant then it is intercompant Stock transfer and after getting the stocks this INDIA plant will supply the end Customer

intercompany stock transfer means the stocks are being shifted across 2 plants of different company codes

The main difference is the same as what is the difference between sales and stock transfer

Sales will happen to the end customer and stock transfer will happen between plants

In Intercomany sales the sales is happening to the end customer directly who is assigned to a different company code

In Intercomany stock transfer stock is moving between 2 plants of different company codes

Regards

Raja