Dear All,
Situation: A company into seed business ( Exempted from State and Central sales tax vide memo no..........) having its process plant only at maharastra. Now plan to purchase a varity of seed from Say Bihar. Company Transfers its (branded) packing material to Bihar. supplier packes seed into this packing material and delivers to companies godown in same state ( near by location). this packed material can be readily used for sale to same or other neighbouring state.
Question- Is any sales tax liability would be there on packing material, since it has been moved to different state however company is only into business of selling seed. on Delivery challan ( NOT FOR SALE Stock Transfer only) has been marked.
Is Form F need to be submitted at receiving state. OR since saleable goods are not taxable, company is never required to deposit sales tax on packing material had this material were packed at its onw plant at Maharastra and moved to Bihar, there is no liability to comply with form F as well.
In is normal seed business company is not required to submit form F on transfer of seed to other state.
Please somebody clarify this.
CAclubindia
