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Form F in Slaes Tax Act

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?


 23 Replies

Ravindra B R (service)     16 April 2009

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.

NIHAR (n/a)     17 April 2009


anupam (accountant)     20 April 2009

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.



MUKUL KUMAR MANISH (Advocate(Tax Consultant))     24 April 2009

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.



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

1 Like

Alpesh Upadhyay (Advocate)     10 May 2009

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.



Megha Suri (Associate-Indirect Taxes)     07 September 2011

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?

RAJASEKARAN VAIDYANATHAN (Accounts Manager)     07 December 2011

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

Ravindra B R (service)     08 December 2011

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

R.K.RENGARAJ (GM/INDIRECT TAXES)     09 December 2011

Under the CST Act,  any movement of goods from one state to another state should be supported by C form for sales, and F Form for stock transfer (other than by way of sale). 

When material is transferred from Principal to Agent or Head office to branch and vice versa, the title and ownership is not transferred and lies with the principal.  And hence, to prove this movement as "other than by way of sale" F form is needed.  By submitting this CST 2% can be avoided.  C form has to be submitted once in quarter and  F form is once in a month.





Kanagasabai (Advocate)     12 December 2011

Form-F is issued by the Branch or Agent who is receiving the goods from another state to the transferor of goods.

Form-F can be issued for  Finished goods, raw materials and manufactured scrap as well.

Megha Suri (Associate-Indirect Taxes)     12 December 2011


Could you please confirm 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?

Kanagasabai (Advocate)     27 December 2011

Goods includes Finished Goods as well as raw materials. 


R S Rathore (accountant)     30 January 2012

pl advise.....In case of purchase returns  against inter -state purchases Form "F" is applicable or not.

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