Form F stock transfer

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

one of my customer sending their equipment from one state to another state and they have registered in both the state. For which they are issuing form f from one state to another state. Whereas the authority concern is asking us to pay the tax on misuse of issuance of form f due to no sale effected in the received branch. Our contention is once the job gets over we will transfer the equipment to respective transferror state. Whereas our client is liable to pay only service tax on the proving of services to various clients. There is no transfer of property involved in the transaction, possession n control with our client only. Can any one can help how to defend this issue.

AI Summary

Interstate stock transfer exemption: Form F supports non-sale characterization so CST is not leviable on such movements.
Interstate movement of equipment between branches for jobwork qualifies as a stock transfer and not a sale where possession and control remain with the transferor; furnishing Form F that the receiving branch has received and accounted for the goods supports non-sale characterization. Section 6A requires that movement be occasioned by transfer to another place of business or agent and not by sale, so authorities cannot levy central sales tax on such transfers when Form F is produced and services are subject to service tax.