transfer of machinery
This query is : Resolved
28 January 2011
hello,
i want to know the procedure to be adopted for transfer of machinery from Tamilnadu state to Gujarat State under the provisions of CST Act. I know that Form F is to be given by transfee (gujarat branch office) to transfror (tamilnadu Head office). But this provision is for transfer of Stocks. Is machinery included in the same provision? Are there any other forms/ declaration to be obtain from Gujarat tax authorities?
i want to know the procedure to be adopted for transfer of machinery from Tamilnadu state to Gujarat State under the provisions of CST Act. I know that Form F is to be given by transfee (gujarat branch office) to transfror (tamilnadu Head office). But this provision is for transfer of Stocks. Is machinery included in the same provision? Are there any other forms/ declaration to be obtain from Gujarat tax authorities?
28 January 2011
You are correct, Form F is applicable in case of Stock transfer, No form is required to issue for machinary transfer.
29 January 2011
thanks shailesh bhai for ur prompt reply..
so can we transfer t machinery from chennai to gujarat without paying any taxes? wht wud be the case if the company has shifted its registered office from tamilnadu to gujarat? i know about t Form 403 of GVAT which is like entry pass for machinery but that is the case with H.O to Branch transaction. Wants to know t tax implications in case of change in registered office.??
Thanks and regards..
Hardik Patwa
so can we transfer t machinery from chennai to gujarat without paying any taxes? wht wud be the case if the company has shifted its registered office from tamilnadu to gujarat? i know about t Form 403 of GVAT which is like entry pass for machinery but that is the case with H.O to Branch transaction. Wants to know t tax implications in case of change in registered office.??
Thanks and regards..
Hardik Patwa
02 August 2025
Great question! Here’s a detailed explanation about **transfer of machinery interstate under CST and VAT laws**, including when a company shifts its registered office:
---
### 1. **Transfer of Machinery from Tamil Nadu to Gujarat (Interstate Transfer)**
* **Form F**:
* **Not applicable for machinery.**
* Form F is specifically for **stock transfer** (goods for sale/stock-in-trade) between units of the same dealer located in different states. Machinery is a fixed asset, **not stock-in-trade**, so Form F does *not* apply here.
* **Tax Implication**:
* Normally, **transfer of fixed assets like machinery from one state to another within the same company is considered a transfer of capital goods and not stock transfer.**
* This means **sales tax / CST is generally not applicable** on transfer of machinery as it’s not a sale or stock transfer for resale.
* However, confirm with local VAT authorities as some states may have specific rules or require an entry pass (like Form 403 in Gujarat).
* **Entry Pass (Form 403 in Gujarat)**:
* When machinery moves from Head Office (HO) to Branch Office (BO), Gujarat VAT authorities may require an **entry pass (Form 403)** to allow smooth interstate movement of fixed assets.
* This is a procedural document, not a tax payment form.
---
### 2. **If Company Changes Registered Office from Tamil Nadu to Gujarat**
* **Relocation of Registered Office** is different from stock or machinery transfer.
* The transfer of machinery and other fixed assets to the new registered office (in Gujarat) from Tamil Nadu would be treated as:
* **Transfer of Capital Assets** from one business location to another.
* Since it is the **same legal entity** moving its registered office, **no CST or VAT is payable** on this transfer of machinery.
* However, **intimate the relevant VAT/Tax departments** in both states about the shift and get applicable documentation in place to avoid issues later.
* **Forms and Permissions**:
* You might need **No Objection Certificates (NOCs)** or confirmation from Tamil Nadu tax authorities about shifting.
* In Gujarat, you may need to register your business afresh or update registration, and get permission or intimation for asset transfer.
---
### 3. **Summary Table**
| Scenario | Tax Implication | Required Forms/Actions |
| ------------------------------------------- | -------------------------------- | ----------------------------------------------------------------- |
| Transfer of machinery interstate (TN → GJ) | No CST/VAT on machinery transfer | Entry pass (Form 403 in Gujarat) for movement; no Form F required |
| Company shifts Registered Office to Gujarat | No CST/VAT on machinery transfer | Intimate tax authorities; update registrations; possible NOCs |
---
### **Additional Notes:**
* For **moving machinery across states**, always keep **proof of transfer** (delivery challans, invoices showing transfer as asset movement, board resolutions, etc.).
* Always **consult local VAT and CST departments** or a tax consultant for state-specific nuances.
---
Would you like me to help draft the **board resolution** or **documentation checklist** for this machinery transfer? Or anything else related?
---
### 1. **Transfer of Machinery from Tamil Nadu to Gujarat (Interstate Transfer)**
* **Form F**:
* **Not applicable for machinery.**
* Form F is specifically for **stock transfer** (goods for sale/stock-in-trade) between units of the same dealer located in different states. Machinery is a fixed asset, **not stock-in-trade**, so Form F does *not* apply here.
* **Tax Implication**:
* Normally, **transfer of fixed assets like machinery from one state to another within the same company is considered a transfer of capital goods and not stock transfer.**
* This means **sales tax / CST is generally not applicable** on transfer of machinery as it’s not a sale or stock transfer for resale.
* However, confirm with local VAT authorities as some states may have specific rules or require an entry pass (like Form 403 in Gujarat).
* **Entry Pass (Form 403 in Gujarat)**:
* When machinery moves from Head Office (HO) to Branch Office (BO), Gujarat VAT authorities may require an **entry pass (Form 403)** to allow smooth interstate movement of fixed assets.
* This is a procedural document, not a tax payment form.
---
### 2. **If Company Changes Registered Office from Tamil Nadu to Gujarat**
* **Relocation of Registered Office** is different from stock or machinery transfer.
* The transfer of machinery and other fixed assets to the new registered office (in Gujarat) from Tamil Nadu would be treated as:
* **Transfer of Capital Assets** from one business location to another.
* Since it is the **same legal entity** moving its registered office, **no CST or VAT is payable** on this transfer of machinery.
* However, **intimate the relevant VAT/Tax departments** in both states about the shift and get applicable documentation in place to avoid issues later.
* **Forms and Permissions**:
* You might need **No Objection Certificates (NOCs)** or confirmation from Tamil Nadu tax authorities about shifting.
* In Gujarat, you may need to register your business afresh or update registration, and get permission or intimation for asset transfer.
---
### 3. **Summary Table**
| Scenario | Tax Implication | Required Forms/Actions |
| ------------------------------------------- | -------------------------------- | ----------------------------------------------------------------- |
| Transfer of machinery interstate (TN → GJ) | No CST/VAT on machinery transfer | Entry pass (Form 403 in Gujarat) for movement; no Form F required |
| Company shifts Registered Office to Gujarat | No CST/VAT on machinery transfer | Intimate tax authorities; update registrations; possible NOCs |
---
### **Additional Notes:**
* For **moving machinery across states**, always keep **proof of transfer** (delivery challans, invoices showing transfer as asset movement, board resolutions, etc.).
* Always **consult local VAT and CST departments** or a tax consultant for state-specific nuances.
---
Would you like me to help draft the **board resolution** or **documentation checklist** for this machinery transfer? Or anything else related?
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