CMA Final · Indirect Tax Laws and Practice · Transition to GST (Transitional Provisions)
Under the transitional provisions, semi-finished goods were sent to other premises before the appointed day for manufacturing processes and are lying there after the appointed day. Within the period permitted for return, what may the manufacturer do under the existing law as per the third proviso to section 141(2)?
The manufacturer may transfer the semi-finished goods to the premises of any registered person for supply from there, either on payment of tax in India or without payment of tax for exports, within the period specified for return.
- ATransfer the goods to a registered person's premises to supply therefrom on payment of tax in India or without payment of tax for exportsCorrect
- BSell the goods only after paying tax at double the normal rate
- CTransfer the goods only to unregistered persons
- DDo nothing until the goods are returned to the original place
Explanation
The third proviso to section 141(2) lets the manufacturer, in accordance with the existing law, transfer the said goods to the premises of any registered person for supply on payment of tax in India or without payment of tax for exports within the period specified. The other options are not provided.
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