F-Forms against Branch Transfer

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This query is : Resolved

asgarali (Querist)

10 November 2009 Dear sir,
The Dealer is work contractor executed civil work during the year 2005-06, 2006-07 and 2007-08 in Mumbai and OMS and material directly supllied from OMS suppliers to our OMS Branches where are the Works Contract executed and C-Forms issued from Mumbai because bill raised in head office name i.e.Mumbai but actual material supplied to OMS Branches which is mentioned in purchase invoice that material sent to your OMS site of works and the dealer is not maintained any record of Stock Transfer in this case what to do? the dealer should obtain F-Form branches?

Bishwajeet

Bishwajeet (Expert)

10 November 2009 goods are despatched to another State on consignment basis or to branch of dealer in another State, there is Inter State movement of goods but there is no sale and hence no CST is payable. This provision is often misused and goods are despatched in the garb of consignment or branch transfer though actually it may be a sale. Hence, section 6A(1) of CST Act provides that when a dealer claims that the Inter State movement of goods is not a sale, he has to prove the same. (In legal terminology, it is called that â€˜burden of proofâ€™ is on the dealer). For this purpose, he must produce a declaration in â€˜Fâ€™ form received from Consignment Agent or Branch Office in another State.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)

10 November 2009 Agree with Bishwajeet and often consignment notes(CN) are also checked to ensure that physical movement of stock is only between Head office/branch/c & F.

So in my opinion purchase and sale transaction can't be legally supported by F Form.

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