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F Form

Arvindmjain (CA Practice ) (45 Points)

10 May 2007

Dear Freinds

Our is a manufacturing concern in Maharashtra. Can we send goods to Salem to our consignment agent against form F. Also tell me the procedure for the same.

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9 Replies

Manohar (28 Points)
Replied 10 May 2007

Yeap,

You can against Form F

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Akhil (169 Points)
Replied 10 May 2007

The One says:

Any stock/branch transfer is not "inter-state" sales. But the onus of proving this lies with the dealer. This also includes consignment related tranfers.

How does the dealer accomplish this?..... by providing proof in the form of Form F.

(Guest)

dear, merfely submision of from 'F" is not a proof of stock transfer.THe assessing officer may check the transaction.For furthe deatils may contact sunil_tax2003 @ yahoo.co.in sunil

Aditya M (Student) (166 Points)
Replied 12 February 2008

Refer to Section 6 of the CST. The basic condition of inter-state sale is that there should be a sale. If you send goods to your branch in another state, it is not a sale as you cannot sell to yourself. Likewise, if a dealer sends goods to his agents in another state who stocks goods on bahalf of the dealer, it is not a sale. This is called a stock transfer or a branch transfer. There is a case, Electric Construction and Equipments C. Ltd. where it was held that if at the time the goods are transferred to the branch and sold through the branch but buyer was known and identified before the goods were despatched from the factory, it would be an inter-state sale, not a stock transfer. As per Section 6A, the onus of proof is on the dealer. This declaration is given in Form F. If form F is not submitted, the transfer will automatically be treated as a sale. Hope this makes the position of law clearer.

Vijay K. Agrawal (Service) (608 Points)
Replied 13 February 2008

pl note follwing steps. 1. prepare invoice in the anme of your consignment agent. 2. do not levy any CSt or local tax write in BOLD LETTER on invoice STOCK TRANSFER. 3.collect 1 f form for entire despacth in particular month and submit to your sales tax department. 4. maintain normal ledget as in case of CST and other sale.

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K Sreeharsha (CA Final) (54 Points)
Replied 30 April 2009

Hi I have a Query where One of the Motor Vehicle Company situated in one state has transferred heavy reconstruction machines to its Authorised Dealer in the other state where the goods transferred as a stock transfer to agent and the Authorised dealer has sold the goods by raising invoice in its own name accruing the local tax where the customer was not known to the Principal. And the Motor Vehicle Company(Principal) is demanding the Authorised Dealer for F Form.

Will it constitute an F form sales.

Raman (Artilcle Assistant ) (57 Points)
Replied 30 April 2009

Hello Mr Sreeharsha,

This is not an F form sales as u can do so only by transfering ur goods to ur sales dippoo in the other state , or to ur branch in other state,

so as far as ur query is concerend this transfer will constitute as inter satate sales ,

or for avoiding huge tax liability if ur Authorised dealer is a registered dealer under CST act

then u can sale such goods on C form.

Thanks & Regards

Raman Gora

K Sreeharsha (CA Final) (54 Points)
Replied 30 April 2009

Thanks Raman but this Authorised Dealer is acting as an agent and has an agreement with the principal for such a stock transfer and also section 6A of CST states this as an F Form Sales since he is an agent.

Correct me if I am wrong.