TAX LIABILITY

[Asked by Guest]

Dear Sirs,

I am consignment agent for an fmcg company, I am getting products from my parent company as Stock transfer and i am issuing Form F for that, In turn I am sending the products to my branches as stock transfer, all my branches are paying the amount for products directly to my Parent company (not in our account the agreement is like that between me and the company), after selling the products they will send sales report to our Parent company and they will pay the taxes from their bank account to sales tax department on our behalf, please clarify me who is responsible for the Sales Tax for the outstanding stocks (not sold or not invoiced) please help me.

AI Summary

Sales tax liability: unsold consigned stock is not taxable; Form F and proper returns are required to claim exemption.
Goods transferred to branches under consignment or stock transfer are not subject to sales tax while unsold because no consideration has been received; branches must provide sales details so the consignment agent can file returns, and valid Form F is required to claim interstate exemption-absence of Form F exposes the transferor to tax liability.