Set-off / Form F

This query is : Resolved

Meghana (Querist)
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16 May 2008 A manufacturing partnership firm based in Mumbai sends raw materials for processing to branch outside state.

After processing goods are returned back to Mumbai and then sold in mumbai / exported.

do we require form F from the branch, as i believe form F is only applicable when goods are sent outside state for sale.

can the STO partially set off the VAT paid on purchases for goods sent to branch outside Maharashtra.

I would be grateful if i can get the relevant sections in the MVAT Act, 2002 for my queries.

Thanking you in advance

Meghana

Nilesh Damji Chheda

Nilesh Damji Chheda (Expert)
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20 May 2008 hi!
1) in case u recv goods from branch outside the state of maharashtra it should be against Form F.

2)according to rule 54 of the MVAT Rules, 2002 in case where dealer sends goods outside state of maharashtra other than as sales i.e branch transfer. a reduction of 3% of input tax credit in respect of corresponding purchases have to be made.