05 September 2008
Declaration in F Form - We have seen that when the 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.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 ‘burden of proof’ is on the dealer). For this purpose, he must produce a declaration in ‘F’ form received from Consignment Agent or Branch Office in another State. But in our case we are receiving form-f's also we have some returns of our agents, they are asking same as (F-form) but our cto not releasing f-forms for that purpose Pls suggest us what can we do? How can we get forms?
15 November 2008
Ideally you will also have to give F form for the materials that come back from your agent (state 1) to you (state 2).
You should not tell the CTO that this is material return. Instead you should tell him that the material has been transferred as stock transfer from our location (state 1) to us (state 2), since you are registered in both the states. Also this is correct in law because strictly speaking it is nothing but a stock transfer i.e. interstate movement of goods otherwise than by way of sale.
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