• Jan
  • 10
  • 2012

All about F forms under CST Act, 1956

Posted In GST | , | 52 Comments » Print Friendly and PDF

To constitute interstate sales, one of the basic requirement is that there should be sale. If a person sends goods outside from its state to its branch office in another state then it is not sale because you cannot sell goods to yourself. Similarly if a dealer sends goods to its agent in another state who stocks and sells goods on behalf of the dealer, such agent is called consignment agent and such stock transfer is also not considered as interstate sales since there is no sales involved in it, sales will take place when such agent will sell goods. But to prove such stock/branch transfer, F form is required to be produced as proof.

F form required for stock transfer- F form is required to be produced as proof of stock transfer. As per section 6A(1) submission of F form is mandatory to prove stock transfer. Otherwise, the transaction will be treated as sale for all purposes of CST Act.

F Form is issued by the branch office/consignment agent receiving goods as branch/stock transfer to its head office/principal who is sending the goods by way of  stock/ branch transfer. The H.O./Principal produces such F forms to its assessing authority to prove such stock/branch transfer.

One F Form for one month: First Proviso to Rule 5 of CST Rules 1957 provides that one F form covering receipts during the month can be issued. If space in F form is not adequate, a separate list may be attached as annexure to form F giving details, provided that the annexure is firmly attached to the form. The blank form has to be obtained from sales tax authority in which the transferee is situated, i.e. State where goods were received. If the form is lost, indemnity bond has to be given and duplicate form clearly marked as Duplicate can be issued.

When Stock transfer is treated as Inter state sales: When goods are dispatched to Branch office or consignment agent in other state and thereafter these goods are sold from the branch office or by the consignment agent then it is not a sales and is stock or branch transfer hence no CST liability arises.

However, if the movement of goods is occasioned on account of sales, the movement will be treated as interstate sales. It can be explained with an example

Suppose the dealer A registered in Punjab who manufactures some goods and send these goods after manufacturing to its branch office situated at Delhi wherefrom the goods are sold in Delhi. Now the movement of goods from Punjab to Delhi will be treated as stock transfer or branch transfer and for which no CST liability arises and F form will be issued by Delhi Branch to Punjab dealer.

But if a person B in Delhi wants to purchase some goods of special description which is not normaly manufactured by A and Mr B places order with A in Punjab for manufacturing special descriptioned goods. Now if A manufactures such ordered goods and send them to its branch at Delhi then such movement will be an interstate sales and not a branch transfer since the movement of goods was due to a predetermined contract of sales.

Thus where goods were sold through branch, but buyer was known and identified before goods were dispatched from factory. Obviously this was held as inter state sales and not a stock transfer- Electric Construction and Equipment Co. Ltd. V State of Haryana- (1990) 77 STC 424 (P&H HC DB)

In South India Viscose Ltd. v. State of Tamilnadu-(1981) 48 STC 232 (SC)= AIR 1981 SC 1604 it was held that if there is a conceivable link between contract of sale and the movement of goods from one state to another in order to discharge the obligation under the contract of sale, the interposition of the agent of seller who may temporarily intercept the movement will not alter the interstate character of the sale.

F form is not a conclusive evidence but it is conclusive after assessing officer passes an order: Submitting F form is not a conclusive evidence per se to prove beyond doubt any stock or branch transfer. The assessing officer may make enquiry as to whether declaration furnished by dealer are true or not. The sales tax authorties can investigate if they are of the opinion that the movement of goods is an interstate sale and not stock transfer.

Section 6A(1) provides that the dealer may submit form F, along with evidence of dispatch of goods. If Dealer fails to furnish such declaration, the movement shall be deemed for all purposes of the Act to have been occasioned as a result of sale. Section  6A(2) provides that if assessing authority is satisfied after making enquiry that the declaration furnished by dealer are true, he shall make an order to that effect and thereupon, the movement of goods to which the declaration relates shall be deemed for the purpose of the CST Act to have been occasioned other than as a result of sale.

In Assam Company (India) Ltd. v. CT, Assam (1997) 107 STC 154 (Gau HC DB), it was held that F form is not conclusive. Sales Tax Officer can make enquiry whether the declaration is true and can reject the F form, if the transaction is found not to be genuine.

In D Dhandapani v. State of Tamilnadu-(1995) 96 STC 98(Mad HC DB), it was held that section 6A(2) of CST Act authorizes Assessing officer to make enquiry that particulars contained in the declaration furnished by the dealer are true and for this purpose other evidence produced by dealer is also to be considered. Authority can call for other information to verify the truth of particulars contained in form F. The dealer has to prove that details in form F are true. If he is unable to do so, transfer of goods can be taken as on account of inter state sales.

It has been held that by production of form F and providing proof of dispatch of goods, the initial burden of proof on the dealer is discharged- State of AP v. Dairy Development Corporation Ltd- (1994) 95 STC 478 (AP HC)

Once assessing officer had made enquiry and passed order that the particulars stated are correct, the presumption that the movement has occasioned otherwise that as a result of sale is conclusive. Reopening of assessment under State Sales Tax would not be permissible only on limited grounds of fraud, collusion, misrepresentation or suppression of material facts- Ashok Leyland Ltd v. State of Tamilnadu 2004AIR SCW 1001.

(Author – Amit Bajaj Advocate, Bajaj & Bajaj Advocates, 128, Sangam complex, Milap chowk, Jalandhar City (Punjab), Email: amit@amitbajajadvocate.com, M +919815243335)

52 Responses to “All about F forms under CST Act, 1956”

  1. Devoo Shah says:

    Sir,

    If the goods are sent from Factory or Head office to the same party’s Retail showroom, then does LBT applicable ?

    Please inform.

    Devoo

  2. PRIYA says:

    I WANT TO KNOW THAT CONSIGNMENT TRANSFER CAN BE SHOWN IN SAME STATE THAT THE AGENT IS IN MAHARASHTRA ITSELF ALSO THE TRANSFER IS VALID AND WHETHER F FORM CAN BE ISSUED.

  3. DEEPAK says:

    MY QUESTION ONLY FOR C-FORM NOT FOR FORM-F IF IN QUARTER NET SALES
    AFTER RETURN GOODS OF PREVIOUS QUARTER IS NEGATIVE PURCHASER
    LIABLE FOR SUBMIT C-FORM OR NOT
    DEPAK

  4. Deepak says:

    Dear Sir,
    Please suggest if a person shift our business from Up in Delhi then he want’s to transfer only capital goods like machinery., so what tax liabilities exist in upvat and he is liable to issue F form from Delhi or not.
    Please revert
    Thanks

  5. ASHOK says:

    Dear Sir,

    Whether my consignee agent ‘A’ can transfer goods to my another consignee agent ‘B’ in another state under instruction from me and claim it as stock transfer.

    Thanks & regards

  6. DEEPAK says:

    DEAR SIR MY QUESTION ABOUT C-FORM PURCHASER SAY THAT HE WAS NOT LIABLE
    FOR ISSUE C-FORM DUE TO PURCHSE GOODS RETURNED MORE THAN INVOICE
    AMOUT .PURCHASE LIABLE FOR ISSUE OF C-FROM OR NOT IF NO
    SALES TAX DEPARTMENT CONVINCE ABOUT NONE ISSUE C-FORM
    DEEPAK

  7. Nishant patil says:

    Sirs

    we purchase goods from outside state @ 2% & same is to send for job work to Some other party in same state & after job work we have to be collect that goods. How i save tax

  8. Nishant patil says:

    Sirs – Can you tell me somebody when I purchase goods from other state (Interstate) & same goods is to be send for job work in different place & after job work we have to be receive that material. kindly explain what forms requires & what procedure is to be save my tax.

  9. DEEPAK says:

    DEAR SIR
    WE HAVE NOT SEND GOODS TO AGENT PURCHASER SAY THAT
    NET PURCHASE NIL DUE TO GOODS RETURN OF BEFORE QUATTE
    PURCHASE LIABLE TO PROVIDE C-FORM OR NOT.
    DEEPAK

  10. Satish Parihar says:

    We have lost form received from other branch now we required duplicate form F please suggest process for the matter.

  11. DEEPAK says:

    dear sir
    please give me guidance for c-form i sold goods 1-1-2013 to 31-3-2013
    rs-18000/- from gujarat to mumbai this period party return goods rs-195000/-
    being sold before 31-12-2012 so party refuse to send c-form from purchase
    1-1-2013 to 31-3-2013 due to net purchase nil.party not liable for
    submit c-form.
    deepak

  12. vijayakumar says:

    Sir,

    I am buying chemical from a dealer in Tamil nadu -WHO IS UNDER FORM K – or is a trader below 50 lacs annum. He gives a bill with Tin number with 0.5 % vat tax& says this cannot be taken as input credit.
    It is ok. But my question is whaer shall I declare to sales tax or wher shall I decalre his TIN NUMBER WITHT HE VALEUE? Iwhile filling my monthly returns ( I file monthly form I – INPUT PURCHASE AS ANNEX 1 / SALE AS ANNEXE 2 ETC)
    VIJAYAKUMAR.

  13. RAJASEKHARAN says:

    Sir,

    I am an accountant.But I don’t know how can prepare the invoice to interstate consignment sales which goods imported. please send the details alongwith format of sales invoice.

    Thank you

  14. TAG says:

    My question is : If my material is transferred to one of my own branches with in my state only then what type of permit form should we provide. Can any body please clarify my doubt.

  15. Rajesh YAdav says:

    Dear Sir,

    We want to Stock transfer to Ahmadabad (Head office) to Bhopal.but we have not Tin no. for Our Bhopal Branch. We are an Service provider company and handled Prepaid CAF form Warehouse for Our Client. We want to Rack’s transfer from Our Ahmadabad Warehouse to Bhopal Warehouse.
    So, What is the procedure? which form require for same and how to collect the form for same ?

  16. JEET VISHWAKARMA says:

    Please sir tell me for 1 question
    i am work contractor My Factory is Umbergaon and office is mumbai, i will sale the goods/ stock for mumbai then included 2% CST or not and transfer the stock in mumbai brach as sale i will as sale.

    please give the answer

  17. Aman says:

    Dear Sir,

    Please suggest if a person shift our business from Up in Delhi then he want’s to transfer only capital goods like machinery., so he is liable to issue F form from Delhi or not.

    Please revert
    Thanks

  18. Dinesh kumar says:

    A Importer import their goods at Delhi and sale that goods from other state. This importer issue stock transfer invoice in prior date to clearance date that goods.

  19. MARUTHI says:

    PIS TEL ME WHAT IS THE PROCEDURE FOR TAKING F FORM FOR CANCELLED DEALERS

  20. K.L.CHANCHAWAT says:

    I appreciate your knowledge on the subject,your article resolves the problems faced by many-K.L.CHANCHAWAT , VAT Expert, UDAIPUR

  21. muthu says:

    Sir can u please tell me stock transfer Bangalore to Chennai Branch
    Type 1. stock Transfer without tax Bill Value / Type 2 . Stock Transfer with 2% cst tax BILL Value against form ‘c’
    How to filling in Tamil Nadu Sales Tax Return and how to prepare in form F and Form C .

    Glory Associates

  22. senthil says:

    dear sir,
    please share – if SEZ(Special Economic Zone) is conver under form F?

    usually we used to provide Form-I for interstate sale for stock (rawmaterial) transfer what procedure we have to follow?

  23. b shanker says:

    Dear Sir

    Dear Sir

    I Have one Doubt, when interstate stock transfer will made  we have to issue Form F , but  in our company have Consignee agent in Jharkand  , our company wants to change C&A to C&F , in jharkand ., for same area (Ranchi) which form applicable for this Stock transfer please send me suggestion for  this regards…

  24. B SHANKER says:

    Dear Sir

    I Have one Doubt, when interstate stock transfer will made  we have to issue Form F , but  in our company have Consignee agent in Jharkand  , our company wants to change C&A to C&F , in jharkand ., for same area (Ranchi) which form applicable for this Stock transfer please send me suggestion for  this regards…

  25. A S SARADA says:

    periodicity of f form is not maintained ,what steps can be taken by government authority ? and what are the remedies for us ? how we solve the problem?

  26. vivek khunteta says:

    i have purchase a goods from Andhra pradesh the goods deliver to me at bengal naw i sell this goods to rajasthan.Now the cst which is charge upon me and by me are adjusted or not

  27. MITUL says:

    dear sir,
    i am chemical manufacturer in gujarat. some of my clients are in maharashtra, they send us raw materials for job work, when the job is done we send them the finished goods, now the sales tax officer is asking for form F. as the clients are not my dealers so is it necessary to issue form F,

    please help me out

    thanks
    mitul

  28. Joseph Maprayil says:

    Very precise, simple and useful post. Thanks M/s Bajaj & Bajaj.

  29. NITIN JAIN says:

    can a dealer who is regestired under composite scheme use F-fORM FOR STOCK TRANSFER

  30. L.B.Jha says:

    Dear sir,

    I have some query related to Stock Transfer : For example : we have branch office with 3 godowns radius of 10 to 12 km in one city which are registered in sales tax with single TIN No., and receiving materials from plant as a stock transfer. Can I unload the material in 3 separate godowns, even if address is mentioned of any one godown in esugam or invoices of stock transfer vehicle. Kindly guide to my mail id: lalgaurivg@@gmail.com

  31. CA. K. Ramaswamy says:

    Sir,

    Whether capital goods transferred from one a branch to another branch in another state, is required to be supported by Form F declaration?
    If yes, if the movement is supported by Form F and evidence for despatch is not available, whether the transaction can be assessed? Especially when submission of Form F itself deems that there is no sale.

  32. Jayanthh says:

    We are based in bangalore & we used to have a branch in Maharastra in 2006-07, closed thereafter. For all branch transfers effected, we had received F forms on quarterly basis i.e 1 form for all transfers of 1 qtr & these were duly submitted here. Now, at the fag end of the period, I have been told by my Assessing Officer that we need to submit the F forms on a monthly basis, which I now know is true. But our branch In Maharastra is closed & there is no way I can get fresh F forms. Please let me know if there is any provision, where the Quarterly F forms are acceptable. Also, I wonder howthe maharastra Vat authorities issued the F forms quarterly, when monthly forms is a clear rule?

  33. srinivas s says:

    Sir,

    we have Branch in Bangalore and all material what is purchased from unregistered dealers in bangalore will be sent to chennai and same will be supplied to Customer against VAT

    can this transaction will be considered as stock transfer from bangalore to chennai against Form F

  34. Dinesh Pareek says:

    Dear Sir,

    We are running our firm from Rajasthan and planning to procure Plastic Film from
    Daman under form F.

    After receiving the material from Daman under F Form can we sale the same under
    VAT.(with VAT)

    Kindly advice we should go with F form or not.

  35. pankaj kumar says:

    suppose one person in Punjab transfer stock to its branch in kerala ,but due to space constraint, kerala branch diverted this stock to another branch of the same person in tamil nadu.in this case which branch will issue form “f” under central sales tax to which branch.

  36. M,JAIN says:

    I had been appointed as Gujarat u/s 182,stat.of the contract act based consignment agent of theby Banglore party.I sold Bangalore party’s goods to local Gujarat party.But Gujarat party is not ready for payment.Therefore Banglore party has told the agent to pay the outstanding payment & give legal notice to me for Recover payment.
    i would like to know that the liabilities would come on agent.

  37. anand sharma says:

    Sir,

    I am registered with the Delhi Vat department and want to give the material on consignment basis, sale to other dealer on commission basis. what invoice i have to issue, whether i will charge the tax or not,

  38. Narayanaswamy says:

    Dear Sir,

    We have Branch in Chennai. We import material from Japan Singapore, Thailand etc. We are the Dealers of automobile parts. Our orders are customer based and known earlier. If we Transfer the stock to our Branch at other states can ve make it against Form ‘F’. If it is treated as interstate sales can e raise sales invoice with CST to our branch. Is it allowed. Can our branch issue Form’C’. Please clarify.

  39. vikas says:

    sir,
    i want to know about Haryana state sale tax which form i enclosed in monthly payment challan to be deposited in Departments Please send me latest Challan format & monthly Returns form format

    Thanks with Regards
    Vikas

  40. Paresh V Mehta says:

    Sir,

    My clients is purchasing furniture in mumbai and transfer to Branch at Delhi for use of furniture at mall where goods sold. Can we transfer in FORM F ? Since furniture are use in mall. These furniture are different from mall to mall dependent on size of area alloted by mall.

    Can we transfer these counter/furniture on FORM F

    Thanks and Regards,

  41. Prtipal says:

    Sir,
    It is possible that F from issue in negative value.

    Ex :- Pur in Jan month = 500000/-
    Pur Retd. in Feb month = 100000/-

    F form issue in -100000/-
    it is right on no.

  42. Mahesh says:

    Sir, Please guide me whether Form F is required incase where one branch transfers the rawmaterial to the other inter state branch for manufacturing purpose.

  43. Pankaj Jaswal says:

    Pl.guide me about ‘f’ forms:-
    1)we have to prepare it monthly/quarterly.
    2)suppose consignor party issued consignment goods on 27/12/2011 & we entered on 05/01/2012 & we sold it after taking in stock on 05/04/2012 then in which date We’ll issue the ‘f’ form.

  44. Kalash Singh says:

    Dear Sir Which Amt. Fill in Form F,Challan Amt.Or Job Work Charge Amt.

  45. Shivakumara Hiremath says:

    1. How to Goods Sold Consigment Entry passed?

    Ex: xyz party 20 Tons Goods sold interstate Amount Rs 10,0000/-

  46. naveen says:

    Sir can u please tell me about process involved in applying for F form online to branch from tamilnadu.

    thanking u..

    naveen

  47. VIJAY SATIJA says:

    some motor vehicle component sold to customer of U.P.State by charging CST 2% Against Form-C. Subsequently some material is Rejected by Customer.Further at the time of issuing of Form-C to Sandhar, Customer is showing less Purchase Return Value in the Total invoices Value.
    Now the Customer is demanding Form-F for the Purchase Return by quoting under the Rule 6A of C.S.T. Act. Further the customer has informed that they are demanding the Form F as per the ruling of Supreme Court the case of M/s Ambika Steels Ltd v/s State Of U.P. & others , civil appeal 4970 of 2008 decided on 31-03-2009.
    we have to provide Form-F to the customer on such type of Purchase Return

  48. JAYESH says:

    SIR THANK FOR SHARE UR KNOWLEDGE WITH ALL.
    BUT I HAVE ONE PROBLEM ABOUT FORM F IS THAT FOR WHICH AMOUNT FORM F ISSUED. 1- STOCK TRANSFERRED AMOUNT OR 2- SALE AMOUNT OF CONSIGNMENT AGENT.

  49. Achint Prasad Akhouri says:

    Income Tax Officer adding the value of consignment stock to directly purchased stock

    treating the consignment stock also also our purchased stock and adding its value to assess income tax. Is there any judgment on this as Commissioner of Income Tax (Appeal) held our stand as correct. But ITO has gone to Appellate Court

  50. narayan says:

    Dear sir——-> what is the difference between assessment and final assessment under the CST and VAT act. What are the documents and records need to be submitted in the assessment and final assessment under the cst and vat act.

  51. i says:

    WANT TO SEND INFORMATION TO INCOME TAX RAID DEPARTMENT. WHAT EMAIL ID TO PROCEED.

  52. Pawan says:

    thanks for sharing the knowledge

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