TaxTMI 
TaxTMI 
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
Statutory forms importance
19 Jan 2015 
3 Replies 
2481 Views Asked by
Form F requirement: absence can convert inter state stock transfers into taxable sales leading to tax, interest and penalty.
Form F is mandatory for inter state stock transfers to establish non sale status; failure to issue, receive or produce Form F within prescribed time may result in the transfer being treated as a sale under the Central Sales Tax regime, attracting tax, interest and penalty. The respondent notes that absent statutory forms the scheduled tax rate of the receiving State will be applied. The text records uncertainty about the effect where the goods are VAT exempt and whether authorities will still assess tax in that circumstance. (AI Summary)
Form F is mandatory for inter state stock transfers to establish non sale status; failure to issue, receive or produce Form F within prescribed time may result in the transfer being treated as a sale under the Central Sales Tax regime, attracting tax, interest and penalty. The respondent notes that absent statutory forms the scheduled tax rate of the receiving State will be applied. The text records uncertainty about the effect where the goods are VAT exempt and whether authorities will still assess tax in that circumstance. (AI Summary)