Stock transfer transaction from exempted zone.

[Anil Gagneja]

Dear Sir,

We have received some inputs  from our customer. They  raised invoice under stock transfer against Form F. The value of goods sent by customer is Rs. 10. 

Further we manufactured the goods and used in our final product and dispatched back to customer. The format of invoice raised by us is as follows :-

Value of goods                                                                  = Rs. 90

Value of  Customer Supplied  goods                        = Rs 10

Taxable Amount                                                               = Rs. 90

CST @ 2%                                                                            = Rs.1.80

Total Amount                                                                    = Rs. 91.80

1. The customer will  issue us  the F Form  for Rs.10 and C Form for Rs. 91.80  against the goods?

Kindly confirm if this procedure is correct..?

Thanks in advance

AI Summary

Confirmation Sought on Issuing Form F and C Form for Stock Transfer and Manufacturing Transaction A discussion on a forum involved a query about a stock transfer transaction from an exempted zone. A party received goods on a stock transfer against Form F, valued at Rs. 10, used them in manufacturing, and dispatched the final product back, invoicing Rs. 90 plus CST. The query sought confirmation on issuing Form F for Rs. 10 and C Form for Rs. 91.80. A respondent confirmed the correctness of the excise duty and CST calculations, while another emphasized the necessity of issuing Form F against the received goods.