Intrastate stock transfer against f form
Ashish Pareek
(Querist) 20 April 2013
This query is : Resolved
Respected Experts,
One of Our client has a Company in Bhilwara, Rajasthan who manufacture drugs/medicines on Job basis.
1. Company has Consignee Agent & Mother depot as well.
2. If company transfers stock against f form from Bhilwara (H.O.) to Jaipur (Consignee Agent) is taxable under any VAT / TAX.
3. If company transfers stock against f form from Bhilwara (H.O.) to Udaipur (Mother Depot) is taxable under any VAT / TAX.
4. If 2nd & 3rd is not covered under any VAT than either One Consignee agent or Mother Depot can transfer Stock (goods) to another C&A of UP, MP, AP, Etc. is Taxable under any VAT or Not.
5. If 2nd & 3rd is covered under any VAT than either One Consignee agent or Mother Depot can transfer Stock (goods) to another C&A of UP, MP, AP, Etc. is Taxable under any VAT or Not & Either H.O. or C&A or Mother Depot can claim input of previous stock transfer.
Kindly do the needful in this matter.
A Quick response in this matter will be highly appreciable.
Ashish Pareek
+91-9166773327, 9887784848
Amit Soni
(Expert) 20 April 2013
Ashish,
For your understanding I am describing the concept of FORM F-
Goods may be moved from one State to another State and may be delivered in other State without a sale. A principal may transfer his goods to his agent, head office or manufacturing unit in one State may transfer its goods to its branches or depots in other States, a purchasing agent may dispatch goods to its principal in other State. In all such cases, there is no inter-state sale. Also no sale is effected during their movement of goods from one State to another. For claiming that goods have moved from one State to another other than by reason of sale, the consignor of the goods is required to produce Form F, duly filled and signed by the consignee of the goods.
Blank Forms F are issued by the Sales Tax / VAT / Commercial Tax Department of the State, in which goods are delivered, to the consignee dealer. For this, consignee should be registered in the State in which goods are to be delivered. Recently, in case of M/s Ambika Steels, the Hon’ble Supreme Court has also upheld the liability of furnishing of Form-F in cases in which goods are sent for job work or goods returned are received back.
Form-F is issued by transferee of goods to transferor of goods and one single form may cover consignments of goods transferred during one calendar month.
After reading this you can understand that-
1. For Q no. 2 & 3 Fom F is not applicable at all. (The transaction is within the state) and there is no sale in transferring the stock so no VAT is applicable.
2. For Q no. 5 No VAT is applicable as transaction doesn't amounted to sale. Only Form F is sufficient to explain the nature of transaction.
Ashish Pareek
(Querist) 20 April 2013
Sir,
I know the Concept of Form F which you have mentioned above.
I want to know that if HO, Bhilwara transfer Stock to consignee Agent, Jaipur, whether he is liable to pay any type of tax / vat or not
Amit Soni
(Expert) 20 April 2013
If you read the point no. 1 of last para it is clearly mentioned that since its only transfer of stock so no tax will be applicable.
Raj Kumar Makkad
(Expert) 22 April 2013
Nothing to add more after going through the reply of soni.
R K JAIN
(Expert) 22 April 2013
The goods transferred to consignee agent within state then tax has to be paid by the consignee agent and proof for the tax paid by consignee is to be submitted to your assessing authority otherwise the assessing authority will ask the tax from you at the time of assessment.
