Stock transfer transaction from exempted zone., VAT + CST

[Anil Gagneja]

Dear Sir,

We have received some inputs  from our customer. They  raised invoice under stock transfer against Form F. The value of goods sent by customer is Rs. 10. 

Further we manufactured the goods and used in our final product and dispatched back to customer. The format of invoice raised by us is as follows :-

Value of goods                                                                  = Rs. 90

Value of  Customer Supplied  goods                        = Rs 10

Taxable Amount                                                               = Rs. 90

CST @ 2%                                                                            = Rs.1.80

Total Amount                                                                    = Rs. 91.80

1. The customer will  issue us  the F Form  for Rs.10 and C Form for Rs. 91.80  against the goods?

Kindly confirm if this procedure is correct..?

Thanks in advance

Posts / Replies

[Pradeep Khatri]

It seems that you had recevied goods from your customer on a challan for doing the Jobwork by using your inputs or goods.

The method used by you for calculating the Central Excise Duty as well as CST is correct.

 

[Anil Gagneja]

We have received the goods from our customer on invoice against form F., because the inputs utilise in the final products to be manufactured by us.

 

It is mandatory to issue form F against Form F..