Mvat and gvat form f
Hitesh
(Querist) 20 August 2012
This query is : Resolved
Company ‘A’ is located at Vasai, Maharastra. (Purchaser)
Company ‘B’ is located at Valsad, Gujarat. (Job Worker)
Company ‘C’ is located at Vapi, Gujarat. (Seller of Raw Materials)
Company ‘A’ has appointed Company ‘B’, located at Valsad, Gujarat as a job worker. Company ‘C’ is the raw materials supplier. The moment of goods are as under:-
1. Company ‘B’ does job work for Company ‘A’.
2. Company ‘A’ order for the purchase of raw materials from the Company ‘C’ located at Vapi.
3. Company ‘A’ instructed Company ‘C’ to directly deliver raw materials at the location of Company ‘B’
4. Company ‘B’ received raw materials from Company ‘C’.
5. Company ‘B’, process the raw materials so received and dispatch the semi finished goods to the Company ‘A’ along with jobwork bill and Form 402.
The query is:-
1. Whether Company ‘B’ is liable to issue Form F for the materials received for job work?
2. Whether Company ‘A’ is liable to issue Form F for the processed materials received from Company ‘B’? What should be the amount of Form ‘F’? (Whether cost of total materials plus job work charges or just the amount of job work charges)
3. Can Company ‘A’ apply to MVAT department for the ‘F’ form from 2009? It should be applied separately for each month/quarter/year?
I shall be grateful for the reply.
R K JAIN
(Expert) 20 August 2012
1. B is not liable to issue form F since the goods are received within in Gujrat.
2. A will issue form F for the total cost of goods sent to A in the case Gujrat Authority ask for F form on job work.
3. Yes they can if they have shown the turnover in the returns filed under CST Act.
Hitesh
(Querist) 20 August 2012
Thanks a lot Sir for the quick reply…….
I bag your pardon…… Still amount tobe mentioned in Form F by Company A to Company B is not clear to me. I will elaborate the example with the amount.
1. Company A Purchased goods of Rs. 100/- from company C.
2. Company C delivered goods directly to Company B on behalf of Company A.
3. Eventhough Company B receives goods within state, it is receives so on behalf of Company A (which is out side state).
4. Company B processed the goods and delivered semi finished goods to Company A, alongwith invoice for job work charges of Rs. 12/-
5. Company A has shown Out Of Mahatastra (OMS) purchase of Rs.112/- in their return.
6. Company A applied for “Form C” from the MVAT Department for Rs.100/-, received the same and issued it to Company C.
7. Now, Form F should be applied for Rs.12/- only? (Because if Company A applies for “Form F” for Rs.112/- than its turnover should be Rs.212/- (Rs.100/- Form C Turnover + Rs.112/- Form F turnover)
I shall be grateful for the reply.
R K JAIN
(Expert) 21 August 2012
Company A purchased the goods and then kept with job worker. He will show in his books first purchase and then goods transferred to job worker and then the goods will be back from job worker. There is no question of doubling the turnover. He has to show in the sales tax return first purchase and then goods sent for job work and then take back the goods after job work for full value. Goods purchased for Rs. 100 and then transfered the value Rs. 100 to job worker and then took back the goods for Rs. 112/-.
