You may be familiar with the word “F”. But today I am here to demystify the concept of F forms under CST ACT. The following conversation between Ankur and Aashish will help you to understand the concept in a great manner.
Ankur : Hi Aashish !!, wassup buddy ??
Aashish : Nothing man, feeling anger on the Indian govt for making nonsense laws. I was transferring my stock from Delhi to Gurgaon and the tax officer put a penalty on that with no reason and was talking about something F like form. I am completely upset.
Ankur : (ohh, may be that would be the case of form F under CST Act about which he does not have knowledge) Hey Aashish don’t worry and just chill, now I am with you and will tell you about that.
Aashish : Hmmm.
Ankur : Aashish as you know that if you make sale of your goods then you will have to pay vat if the sale is within the state and CST if you sold the goods into other state.
Aashish : Yes I know this thing.
Ankur : buddy, if you are transferring stock to your depot in other state then how will you prove that you was transferring these goods to your depot and not selling the goods to someone else and thereby evading the taxes thereon ?
Aashish : Then what to do ??
Ankur : for that purpose Govt introduced the concept of Form – “F” under CST act.
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.
Aashish : Anka, I got an idea, I will make the complete sell by using F form and how the hell Govt will get to know about it that whether I am selling these goods or transferring it to my depot ?
Ankur : NEVER EVER EVER THINK LIKE THAT ( in arnab goswami style ) because F form is not a conclusive evidence but it is conclusive after assessing officer passes the order.
Aashish : Oh sorry, and how many F form can I get ?
Ankur : Actually as per 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.
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Ankur Yadav
[email protected]
Dear Ankur,
I just want to ask you that asset transfer from one state to another state requires Form F?
Excellent Explanation by Author
DON’T UNDERSTAND THE CONCEPT OF FORM F
NOT ABEL TO UNDERSTAND PROPERLY THE CONCEPT OF F FORM
I have received nearly 300 invoices in a month regarding stock transfer from one party.can i issue one F – form for all those purchases in a month.
Form F are applicable only for those items which are being sent to other state on not for sale basis i.e. stock transfer only. if there happens any type of purchase between 2 inter state parties, form 38 is must for material movement to buyer state.
Sometimes, company has to send instruments for repairing or maintenance work and after that material needs to be brought back. this type of stock transfer does not attract any CST and Form F ensures it. In failure of which, material transfer may attract penalty.
hi, one of my customer in Karnataka purchase laptops from Dollar (through OEM), he handover the materials the partner (3th party for the purpose of Courier,) he need to transfer the materials Mumbai, What is documents need to collect from customer
the value in form f should be basic value +vat or basic value only?
Sir, If Principal manufacture in Tamil Nadu, Principal Manufacturer doing job work in Gujarat state and Principal Manufacturer Purchase material from Gujarat State and material delivery at Job worker place in Gujarat state than what is effect come on VAT/CST. Pl. advise.
I am a dealer from Kerala and doing business of Coffee Grading. and also i have a business branch at Karnataka. I am purchasing Coffee from Agriculturist (Always URD Purchases) then send the same to my branch at Kerala. After that i am giving F Forms. But the problem is Karnataka Sales Tax Department is not accepting F Form and asking me to pay 5.5% of Normal rate of VAT or else pay 2% of tax treating as Interstate sale. If i do like this i have to pay tax by my hand only because my supplier or seller or Agriculturist is not paying VAT because coffee is Agricultural Produce. So what can i do for this problem. Kindly help me…
I am working in BSNL Guwahati.We are receiving goods from all states.Then we use to transport them to other states.However Sale tax Dept.Guwahati not alloing it & ask to pay Tax.Pl guide in this matter pl.
I am working in BSNL at Guwahati.We are receiving goods from other states and we issuing it to other states.However Sale tax Dept.Guwahati ask to pay Tax.Is it necessary?Guide me in this matter pl.
I AM GOT THE CLEARELY UNDERSTOOD THE CONCEPT OF FORM F
FROM THE ANKUR YADAV BUT I WANT TO KNOW THE H FORM WITH THESE TYPE OF EXAMPLE
sir i am working pharmaceutical co my question is that if we are purchase goods agt f for we are t/f to goods our other depot agt f form
Very Nice Explaination.
Hello
Good Article
What is Sale Patti ???
f form issued monthly or quarterly.
is it issued different rule every state?
can anybody reply?
what is form f.
F Form meaning and F Meaning
I DID CHURN F FORM : TAKE PRINTO MY L PROC
sir i import crude oil from port we process edible oil & sale against f form to agent in another state
i import edible oil from hss sales can i sale it to
DEAR SIR F FORM WITHIN STATE IS APPLICABLE OR NOT
Dear Sir,
We are doing export medicine. However, we are purchasing it in Mumbai office, our other office in Delhi also. we are exporting mumbai as well as Delhi. we have Mvat registration in Maharashtra. Now my question is that is there we need Dvat registration from Delhi also? becasue we are never doing any operation from Delhi. withaout postal export which medicine sending from Mumbai through courier & picking from that medicine from courier put up into posal office. Kindly help us regarding this.
The material have been received in the month of July and the F form will be made in the month of March.
Is there any limit period of time to issue or generate F form.
Hi
Good morning.
The F form is the part of CST. But when we transfer the with in state, then what is the procedure?
Dear Sir
My question is regarding medicine. If company is registered at state A and products are being manufactured by third party manufacturer at state B. Company is marketing the product in state A only. Now the company want to market its product at state C.So how the product can be send to state c from state B, without sending the products at state A. Please explain the formalities of taxes, road permit, stock transfer, etc.
Thanking You
with regards
Alok kumar jha
+919810850966
My Questions are very simple and as under
1. What value “F” for should declare
2. do we need to register/intimate with local authorities on goods arrival under stock transfer
a very elementry & kiddish article from a professional website !!!
Hii everyone
No, F form is not required for job work related work.
Though the information may be incomplete, I believe you have chosen an interesting way to make the Tax articles better to read. Keep posting.
Can u tell me tax liability against “F” form stock transfer from Delhi. Some Tax consultants say that we have to pay 50% tax and some says no tax to be paid. can u clarify me?
AS IT WAS MY FIRST ARTICLE
thanks to jinesh and saurav for your kind advice and comments, at least i got to know that i have to work hard on next articles…
Thanks again to jinesh and saurav
HI..
DEAR ANKUR,
I WOULD LIKE TO KNOW WEATHER F FORM IS ALSO APPLICABLE IN CASE OF JAB WORK OUT SIDE STATE?
my question is in where they check F Form ? If we transfer goods to other state that time it is necessary to issued f form at the time of sending goods
incomplete information.
“The following conversation between Ankur and Aashish will help you to understand the concept in a great manner.”
great.. aftr rading dis cnversation i will nt use the wrd “grea
‘ again..u call dis great..one of the worst article on taxguru.. u hvnt mentioned anythig abt f form..reversal of credit etc….. dis article was so filmy..
In arnab style for all readers.. Never Ever Ever think to read this