Stock transfer - urgent

Dear Sara11,

F form is required to be produced as proof of stock transfer. As per section 6A(1) submission of F form is mandatory to prove stock transfer. Otherwise, the transaction will be treated as sale for all purposes of CST Act. 

It doesnt matter if the Stock Transfers are shown by delhi in one month and you have shown in other month since there is always a transit time which can be proved with any Department. Instead of showing the same as a transfer to Testing centre you can show the same as directly received at your warehouse and was then later send to the testing centre.

Hope your queries are solved.

Harsh.

Originally posted by : CA Harsh N Gandhi
	Dear Sara11, F form is required to be produced as proof of stock transfer. As per section 6A(1) submission of F form is mandatory to prove stock transfer. Otherwise, the transaction will be treated as sale for all purposes of CST Act.  It doesnt matter if the Stock Transfers are shown by delhi in one month and you have shown in other month since there is always a transit time which can be proved with any Department. Instead of showing the same as a transfer to Testing centre you can show the same as directly received at your warehouse and was then later send to the testing centre. Hope your queries are solved. Harsh.

Thank you for the above reply.. This stock inward entry has not been shown.. And its past 5 months.. But I have shown a stock outward entry for that corresponding stock this month.. How can the error be rectified.? At Delhi, it should be treated as a sale without the F form.. But at Chennai, how to consider this.?

Dear Sara11,

You will have to revise the VAT / CST Returns with your state for that month in which you have physically received your stock, showing the same under Stock receipts.

At Delhi, it should be treated as a Sale against F Form since it is an interstate transaction, you will be compelled to issue a F Form to Delhi.

Request you to not omitt anything since it would amount to discrepancies in the stock, which will be difficult to prove it to the local Sales Tax dept.

Harsh Gandhi.

Thank u Mr.Gandhi.. 

There should one more query about annexure v closing stock inventory.. Wat am doing for reversal of itc wrt interstate sales with c form is reversing a portion of itc wrt local purchase made the same month in excess of 3%.. as am not maintaining accounts inventory wise, it's not possible to track closing stock exactly.. Am adjusting both cst payable and reversal with the available itc.. The how to present the closing stock wrt rate of tax in the annexure. ???