LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Ramya Rangacharya (Proprietor)     23 June 2011

Is Form F required?

Dear All,

               I own a firm which makes apparel and home furnishing items in Handloom. The firm is registered in Vrindaban, Uttar Pradesh. We would be participating in an exhibition in Delhi very soon. I have been told that though we'll have a stall of our own, the bills given to customers will be of the organisers. The organisers have told me that apart from 20% commission on sales I'll have to give them the sales tax ( in this case 5%) that I charge from the customers to them. They have told me that they will be paying taxes in Delhi. 


If I give them all the tax money collected from the customers, how will I pay the taxes? Which tax will I be liable for? UPVAT or CST? Would I be getting a certificate from them stating that they'll be paying the taxes at their end? How do I show the commission charged by them in my accounts?

I would be really grateful if somebody can answer this for me.

Thanks in advance.


 8 Replies

R K JAIN (Advocate)     25 June 2011

I think the organisers are registered under the Delhi VAT Act. You will be transferring the goods to them since they are registered dealer in Delhi. They will provide you F Form for this transcation. You will invoice to them for Rs. 100/-. They will invoice the goods in delhi at Rs. 120/- and further charge the tax @ 5% i.e Rs. 6 and pay the tax to Delhi Govt. Commission will be kept by the organisers and the balance will be paid to you by the oragnisers. Accounting entry will be passed in the books accordingly.

1 Like


I agree with Mr Ravinder Kumar jain. The Organisers are the agent of you. You need not charge any tax in your bill. Just you transfer your goods to the organiser with proforma invoice or official deliverynote. You have to bill in the organisers invoice to the customers.

1 Like

Ramya Rangacharya (Proprietor)     27 June 2011

Thank you Ravinderji and Giriji! But the trouble is that the organisers have refused to issue any form"F". How do I show the transaction then?

Ramya Rangacharya (Proprietor)     27 June 2011

Am I not supposed to pay any tax anywhere? Correct me if I am wrong but I am supposed to pay CST for any inter-state sale.

Ferdous (advocate tax consultants)     14 October 2011

no you are not supposed to pay any CST on your transactions . but if your organisers refuse to issue form F, then you are in trouble. alternatively if they provide you with form C, then you will have to pay 2% tax. but if they refuse to issue even form C, then you will have to pay full tax as per the tax schedule of your state. i think that will be expensive way of dealing.

you can return unsold goods by the same medium.



ferdous a mohamamd advocate

R K JAIN (Advocate)     15 October 2011

If orgainser refuse to give F Form then it will be treated as inter state sale and tax will be paid in your state as per the rate of tax aplicable on the sale in the State. The tax will be paid by you since the orgainiser is not providing the F form and accounting entry will be passed accordinlgy in your books.  You can save from the tax liability in your state only in one condition that you must have an agent in another state and he should be registered in that State and provide F Form to you.

Ramya Rangacharya (Proprietor)     17 October 2011

Thanks Ferdousji. I am also doing exhibitions on my own. And everytime its a different state. Like the rules say I always take a temporary TIN no as a casual dealer and pay my taxes and get the assessment order from the tax authorities of the state. In this case who would give me the Form"F" or Form "C"? Or is the assessment order sufficient as a proof that I have paid taxes in the other state.

Sajid (Auditor)     16 November 2011

  • If the Organisar is selling in his Own Name, then you have to make the Invoice to the Organiser Name.
  • Invoice must be Inter state sale: CST 2% should be charged to the invoice amount, if the organisar provide you C Form, or otherwise you make the bill of VAT applicable in your state , say 6%,
  • The organiser bound to collect the VAT amount from the Customers. You need not to pay the taxes of his state Delhi.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register