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Processing documents

Sindhu (Business Analyst) (38 Points)

31 October 2014

If i am a paddy trader in karnataka, and i need to send paddy for processing to Andhra Pradesh and get back the rice.

What are the tax implications? What documents do i need to show in the checkpost in the state border?

*Note: I am not selling paddy, it is just sending for processing and getting back after processed.

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2 Replies

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 31 October 2014

Your transaction falls under the category of inter-state job work process under the CST Act. One of the main form that can be used for inter state sale transactions is FORM-F. But, here in ur case its a job work process. So, the solution is if job worker is registered under his state vat or cst act, he wl give Form-F and same u can show as document white returning the goods(rice). While sending paddy, u have to maintain the job work outward invoice...which can be produced as document.

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 31 October 2014

Under CST act..with reference to inter-state transactions, pure job work or repair work does not come under the ambit of tax. Further, for documentation pupose or to keep the track of such transaction, job work invoice can be maintained. In ur case, maintain the "Job work outward with returnable invoice". .it should specify the following particulars such as serial number of invoice, vat/cst registration number(if u have), descripttion of the item, unit(kgs or tonnes), date of sending, receiving date etc etc whichever other details required in the invoice.

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