Form F in Slaes Tax Act

Corporate Laws and Indirect Taxation Laws Practitioner.

Dear All,

Suppose A lives in Ahmedabad abd he wants to send some goods to his Agent B in Mumbai against F Form.....What would b the benefits available to A if he sends goods against Form F or without F Form but with CST....Kindly inform me the monetary benefits available to A in both the cases. Should he send Goods against F or not?

 
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The production of F Form is mandatory for all the transfer to principal and his agent. In case the Form is not produced along with the LR, Delivery Challan / Stock Transfer Memo etc the transaction will be considered as a "sale" as per Section 6-A (2) of CST Act. As mentioned above the Assessing officer is free to examine whether the transaction is genuine "otherwise than by way of a sale" i.e stock transfer to his agent etc even after furnishing the Form F.  Any further queries let me know.

 
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FORM "F" IS MANDATORY.

 
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Dear Sir,

My Name is anupam saxena and i had been working under a chartered accountant

there i was doing all the works like sale tax income tax, tds , fbt etc. and also i issue most of form related to sale tax.like f , h c form , f form procedure is when you send any thing to your another showroom in other city.so u send all this thing aganist f form because f form is applied to branch to branch sale but when we sale any product to other city.then cst is applicable and c form is also applicable.

 

 

 
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Advocate(Tax Consultant)

Mr Nirav,

The Form F is the statutory form issued by sales tax department to a dealer who is either a branch or headoffice or vice versa.The form is also issued to a consignee agent who gets the goods from his principal.

The purpose of form F is that for interstate transaction the form is a proof that the goods transferred are stock transfer and is not a sale under central sales tax Act,1956.In absence of any agreement of consignee/branch the either parties cannot receive form f and that interstate transaction shall be covered with form C.

Thus the form F is an evidence for stock transfer from one state to another and the C form is for the interstate purchases.

 

 
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Corporate Laws and Indirect Taxation Laws Practitioner.

 Tx. Can u provide me a copy of contract/agreement 2b executed between Principal and Agent.? 


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Advocate

Dear Mr. Nirav,

In case of stock transfer / consignment against form-F in B-Mumbai, A-Ahd. will not be liable to charge and VAT or CST subject to submission of Form-F & other evidences obtain form B-Mumbai. In such transaction 2% CST [Against Form-C] is benifited.

But, before entring such transaction pl. note that, as per the provisions of Sec. 11(3)(b) of G.VAT Act, 2003, 4% of goods used as Raw Materials in such stock transferred or consigned goods are required to be reduce when you claim Input Tax Credit on RM or Finished Goods.

Therefore, before entring in such transaction, you should calculate the benifit looking to your business transaction method.

 

 

 
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Associate-Indirect Taxes

Can anyone please clarify what kind of goods can be stock transferred against Form F? do they necessarily need to be included in the Registration Certificate; or even goods for business promotion (not mentioned in the RC) can be stock transferred from one branch to another?

 
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Sir I would like to know the Form F under sales tax how it has to be submitted, For every month on for every quarter please clarify

 
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Form F has to be submitted monthly i.e one month transactions should cover one Form F. ref 1st proviso to Sub -rule 5 of Rule 12 of Central Sales Tax (R & T ) Rules, 1957

 
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