Statutory forms importance, VAT + CST

[ganeshan kalyani]

Dear Sir,

We deal in goods exempted from VAT. We do stock transfer. Whether statutory form F is necessary to be issued or received. What is implication if not complied.

Regards,

ganeshan

Posts / Replies

[Pradeep Khatri]

Dear Ganeshan,

Form F is mandatory in case of transfer of stock from one place to other of the dealer's. If not issued or received within prescribed time limit or not submitted at the time of assessment, then, such transfer of stock would be deemed as Sale under CST Act, 1956. Hence, Tax, interest and penalty would be levied/imposed, accordingly.

Regards,

Neelam Taneja - Executive Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[ganeshan kalyani]

Dear Expert,

As per my understanding, in absence of statutory forms rate of tax as per schedule rate will be applicable. Here in case of exempt goods in absence of statutory forms what tax will the government apply. Kindly clarify.

[ganeshan kalyani]

Dear Expert,

I hope issuing /receiving of Form F is essential to prove that the transaction is Inter State stock transfer and not sale. In absence of form F the transaction is termed as sale and tax @ rate prevailing in receiving state for that product as per schedule entry is levied. However if the product is exempt that the question arises as what will be the tax rate at which authority will tax the transaction. I seek expert comment in this regard.

regards,

ganeshan