Statutory forms importance

[Ganeshan Kalyani]

Dear Sir,

We deal in goods exempted from VAT. We do stock transfer. Whether statutory form F is necessary to be issued or received. What is implication if not complied.

Regards,

ganeshan

AI Summary

Form F Essential for Inter-State Stock Transfers; Absence Leads to Tax, Interest, and Penalties under CST Act 1956. A participant in a discussion forum inquired about the necessity of issuing or receiving statutory Form F for stock transfers involving VAT-exempt goods. An expert clarified that Form F is crucial for proving inter-state stock transfers; failing to issue or receive it within the prescribed time results in the transfer being deemed a sale under the CST Act, 1956, subject to tax, interest, and penalties. The participant further questioned the applicable tax rate for exempt goods if statutory forms are absent, seeking expert clarification on the matter.