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

[YAGAY andSUN]

Dear Ganeshan,

Form F is mandatory in case of transfer of stock from one place to other of the dealer's. If not issued or received within prescribed time limit or not submitted at the time of assessment, then, such transfer of stock would be deemed as Sale under CST Act, 1956. Hence, Tax, interest and penalty would be levied/imposed, accordingly.

Regards,

NeelamTaneja- Executive Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Ganeshan Kalyani]

Dear Expert,

As per my understanding, in absence of statutory forms rate of tax as per schedule rate will be applicable. Here in case of exempt goods in absence of statutory forms what tax will the government apply. Kindly clarify.

[Ganeshan Kalyani]

Dear Expert,

I hope issuing /receiving of Form F is essential to prove that the transaction is Inter State stock transfer and not sale. In absence of form F the transaction is termed as sale and tax @ rate prevailing in receiving state for that product as per schedule entry is levied. However if the product is exempt that the question arises as what will be the tax rate at which authority will tax the transaction. I seek expert comment in this regard.

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.