F Form - Capital Goods

[RAMASWAMY KRISHNAIYER]

Sir,

Whether capital goods transferred from one a branch to another branch in another state, is required to be supported by Form F declaration?
If yes, if the movement is supported by Form F and evidence for despatch is not available, whether the transaction can be assessed, especially when submission of Form F itself deems that there is no sale?

Regards

CA. K. Ramaswamy

[YAGAY and SUN]

Dear RamaSwamy,

Any goods, whether R/M, Components, inputs, finished goods or capital goods, if transferred from one branch of the registered dealer under CST Act,1956 to its own branch in other state would  require a declaration in Form F to substantiate that it was not a sale of goods.

If tailor made goods are transferred to other state and then inturn the same goods are sold subsequently to a client in that state, then, it would be deemed as sale not transfer of goods.

Regards,

Team YAGAY & SUN 

[rishi mohan]

In case of any branch transfer of goods, whether it is capital goods/raw material/parts, form "F" shall be applicable.

AI Summary

Form F requirement for interstate branch transfers: submission substantiates non-sale, but tailor-made goods later sale treated as sale. A declaration in Form F is required to substantiate that interstate transfers of goods between branches of the same registered dealer are not sales; Form F is the primary documentary means to demonstrate non-sale. If goods are tailor-made and then sold in the destination state, those movements are treated as sales rather than transfers. Absence of separate dispatch evidence may influence assessment, but proper submission of Form F is central to non-sale treatment.