C.S.T Act,1956

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sridhar (Querist)
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19 March 2009
Whether a branch is liable to CST, after make sales within the state out of stock received from H.O outside a state.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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22 March 2009 3. Branch Transfer/Stock Transfer/Goods sent on consignment [Sec. 6A]
Transfer of goods to a branch or a consignee or vice versa is not a sale. Hence, even if such transfer occasions movement of goods from one State to another, it is not subject to tax under this Act provided dealer sending goods must obtain a certificate in Form F from the counter dealer.
Stress: Where any goods are moved without being sold, it is on the dealer, who sends such goods, to prove that the movement took place without any sale. For this purpose, he must obtain a certificate in Form F from the dealer, who received the goods.
If the demand for stock exists before transfer of stock from head office then CST is payable. otherwise not