C-From issued from Maharashtra

This query is : Resolved

GOPAL KUMAR AGRAWAL (Querist)
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25 November 2009 Facts: Company A released a purchase order from its HO at Mumbai, Maharashtra to Company B at Utter Pradesh.

Situation one:
a) Company B delivers the goods to HO at Mumbai charging CST @ 4%.
b) Company A issues Form C from its HO at Mumbai.
c) Company A after doing labour job transfer the goods to its work contract site at Andhra Pradesh through a stock transfer challan.

Situation two:
a) Company B delivers the goods directly to company A's work contract site at Andhra Pradesh charging CST @ 4%.
b) Company A issues Form C from its HO at Mumbai.

Querry:
1) Is Form C issued in situation two, a valid transaction and acceptable by the sales tax officer?
2) Is company A supposed to collect Form F in situation one and two?
3) What will be the sales tax liability of company A if the works contract site at Andhra Pradesh does not issue Form F to Company A?
4) If Form F is not received, are another document like stock transfer challans, transport bills etc a sufficient documentary evidence to prove that the stock has been physically transfered to its site at Andhra Pradesh and is acceptable by the Sales Tax officer?

Amit Sheode

Amit Sheode (Expert)
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26 November 2009 Dear Shri Agarwal,
Pls refer to Rule 4AA of the CST ( Bomaby Rules) 1957. If you are not registered in AP then you may issue a Mah C Form under proviso to Sub rule 1. However you will have to prove that you are not registered under CST in AP.ans to query 1.
Further you have to maintain the LR documents or otherwise Mah VAT authorities would claim that the goods have come to Mah & that they have moved to AP & in absence of F Form they would be treated as Inter State Sale & tax would be payable on it under Sec 8 (1) or (2) as applicable.
Ans to query 2 & 3
On query no 4 it is stated that there is a deeming provision in Sec 6A treating a transaction without F Form as inter state sale. However there is a lot of scope for litigation if the consignee is the same company.