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Non submission of F Forms

girish (sr officer accounts ) (43 Points)

15 June 2009

We use to make stock transfer to various branches in india. We will send both Taxable Goods and Exempted Goods to various branches in India through stock transfer. However the commercial tax department of West Bengal refuses to issue F Forms stating that it is not necessary to issue F Forms against Exempted Goods. Our Head Office is located in Karnataka and our Assessing Officer is insisting for Submission of F forms even on Exempted Goods too. Kindly let me know whether the contention of Commercial Tax Department of West Bengal is correct?

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4 Replies

prashant (self) (101 Points)
Replied 23 June 2009

I think the Form F is necessary for every kind of goods both exempted and non exempted. Logically as both the type of goods do not carry any tax burden in stock transfer the point in rejcting to issue form F can't be understod. There was specific circular in the year 2002/2003 that needs form F for every interstate stock transfer. Every coveres both taxable and exepted.

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RAJU (LEARNER) (1089 Points)
Replied 23 June 2009

I feel that there is no requirement to file Form-F in case of transfer of exempted goods. In case of taxable goods, if forms are not filed, the same will be treated as regular sale and tax will be levied at appropriate rate. If the goods sent are tax exempt, at what rate the officer will levy tax.

prashant (self) (101 Points)
Replied 23 June 2009

Form F is a procedural requirement. It is to justify the movement, so I still think it is needed even for Exempted goods.

RAJU (LEARNER) (1089 Points)
Replied 23 June 2009

Hi Prashanth,

As per Section 6-A of CST Act, a dealer is required to submit Form-F in support of exemption claimed for transfer of goods other than by way of sale. When the goods itself are exempt, they need not furnish Form-F.

I Feel filing of Form-F is not a procedural matter. Justification of movement between the States can be made by furnishing Invoices, DC and LR copies. Further even if it is not justified of having crossed the border, there will be no liability since movement within the State, is anyway, exempt.