H form and f form - export sales
SWAMY KARLAPUDI
(Querist) 28 September 2015
This query is : Resolved
Dear Sir
ours is a multi state company company. AP branch purchased goods from a supplier in AP for export purpose without tax (Form H will be issued).
But the stocks are separated, some of the stocks are sent to Taminadu branch on stock transfer invoice to export from there.
Balance stocks are exported from AP.
The thing is both AP and Tamilnadu are registered dealers, total invoice received on AP branch from the supplier.
In this case how to issue FORM H to the supplier, who has to issue it? What is the procedure.
Our company people asking for revised invoice, but supplier unable to issue the same as VAT return already filed.
KINDLY HELP SIR.is it possible to get separate H forms from both branches.
Thanks.
Swamy
K.S.Srinivas
(Expert) 28 September 2015
F-Form or Form ‘F’: The F form is required for stock transfer to branches / consignment agents or vice-versa from one state to another without attracting charge of CST. As per section 6A(1) of the CST Act, submission of F form with complete details of movement of goods is mandatory to prove stock transfer. Otherwise, the transaction will be treated as normal central sale for all purposes of CST Act including for charging CST at applicable rates. In fact F Form is an evidence to prove that the goods are sent out to other states on stock transfer basis and not on sale basis. The consignment agent/ branch/ HO receiving such stock transfer consignment is required to issue F Form to the selling outlet (HO/ Branch/ Consignment Agent) or transferror dealer. It may be noted in this regards that if the movement of goods is occasioned on account of sales, the movement will be treated as interstate sales. There are many disputes with the VAT Authorities on this issue so the transfreror unit has to take due care to avoid applicability and attraction of CST on such transfers. These matters are open for investigation by the VATO and are not settled until the assessment order is passed by the VATO in due course.
H-Form or Form ‘H’: The H Form under CST is issued when the buyer is an exporter and buys the goods for the purpose of exports. If the exporter buyer issues H form, the selling dealer is not required to charge or pay any CST on the transaction. The selling dealer should obtain Form H from the exporter buyer in due course along with Bill of Lading for onward submission to the VAT Deptt. or else eventually the selling dealer has to pay CST at full rate as may be applicable. Selling dealer should always obtain security to the extent of amount of applicable CST / VAT which is not charged due to anticipated issuance of Form H and the same may be released after receipt of duly filled up Form H along with copy of the Bill of Lading in due course.
SWAMY KARLAPUDI
(Querist) 28 September 2015
Dear Sir,
You explained about Form F and Form H.
But the problem is -
Our branch purchased total exported stock from the supplier on single invoice. Invoice address on us (AP).
Some of the stock sent to our Tamilnadu branch by doing stock transfer invoice, exported from there. Remaining stock exported from AP.
How to issue Form H. Is it possible to get two H forms against single invoice.
Please reply immediately.
Regards,
R K JAIN
(Expert) 01 October 2015
You should issue one H form for this one invoice, there is no need to issue two H Forms. Goods are exported from AP or Tamilnadu but exported by your firm from both places.
T. Kalaiselvan, Advocate
(Expert) 04 October 2015
Well advised by experts on the subject issue. For further clarifications you may approach a local tax consultant.
