Advance payment against f-form

Consignment agent is a dealer acting for and on behalf of his principle as per consignment agreement executed  among them along with terms and conditions stipulated therein including commission. If a consignment is moved from a principle as a consignment transfer, title of the goods with principle.On receipt of goods the agent  should prepare sale pattile(consignment accounts) and balance sale proceeds should tranfer to them along with F form for each month after deducting his commission. The F form value should be gross sales proceeds and not the transfer value. According to Sec.6A of the CST Act, 1956 if the transfer is not for the reason of a sale it is exempted from payment of tax or otherwise it is an interstate sale.

 In this case you have stated that advance payment was made against consignment. If it is in accordance with the terms of the consignment agreement, it cannot be presumed as  consideration and balance sales proceeds shall be paid subsequently. It is the normal business practice that payment will be settiled after meeting all expenses relating to consignment stock transfer along with accounts and F form. Here it is not clear that whether advance payment is in accordance with the terms and conditions of the agreement. If full value of the consignemnt is paid and the principle has no title of the property, it is not a consignment stock tansfer but  it is an interstate sale. If so the contention of the Sales Tax Officer is in accorance with CST Act. 

Its a Consignment Transfer.

The Contextion of Officer is Not Correct.

You Should Take Legal Advice From Proper Consultant.

Thanks & Regards,

CA Ayush Agrawal

Parbhani

Consignment agent is a dealer acting for and on behalf of his principle as per consignment agreement executed  among them along with terms and conditions stipulated therein including commission. If a consignment is moved from a principle.

U Have prove that consignment move from  - between principle and Agent & legal document for relation as principle and Agent . wharever adv. payment  made is no matter. officer  is wrong. file a complain otr appeal if U R have legal document. 

Please refer second para of query. If the advance payment had made against purchase, how it can be claimed as

transfer of goods u/s 6A of the CST Act,