If yes or no , any court cases in support of the same. Section 6 A of CST Act deals with above subject Stock Transfers.

But I need supporting case laws. Dealer may furnish the prescribed form In token of such transfer to claim exemption. This section has been amended wef Italic words as given by the reader.

Before going to discuss the issue, I would like reproduce the exact wording of section 6A of the CST Act which deals with transfer not by reason of sale of goods from one State to another State: Where any dealer claims that he is not liable to pay tax under this Act, in respect of any goods, on the ground that the movement of such goods from one state to another was occasioned by reason of transfer of such goods by him to any other place of his business or to his agent or principal, as the case may be and not by reason of sale, the burden of proving that the movement of those goods was so occasioned shall be on that dealer and for this purpose he may furnish to the assessing authority, within the prescribed time or within such further time as that authority may, for sufficient cause, permit a declaration, duly filled and signed by the principal officer of the other place of business, or his agent or principal, as the case may be, containing the prescribed particulars in the prescribed form obtained from the prescribed authority, along with the evidence of dispatch of such goods shall be deemed for all purposes of this Act to have been occasioned as a result of sale.

From Para quoted above it is very much clear that Section deals with transfer of Goods from one State to another State.

What is important here to note that the section deals with: For section 6A, definition of Goods is important which has been defined in the Act as 'all materials, articles, commodities and all other kinds of movable property. Thus I understand that such goods capital goods should be shown in sales tax return as transfer and accounting concept should be mingled with legal position.

As per section 6A it is clear that where any dealer claims that he is not liable to pay tax under the CST Act, in respect of any goods, on the ground that the movement of such goods from one State to another was occasioned by reason of transfer of such goods by him to any other place of his business or to his agent or principal and not by reason of sale, the onus to prove lying with dealer that movement of goods is on account of transfer, not by way of sale.

The dealer may furnish to the assessing authority, within the prescribed time a declaration, duly filled and signed by the principal officer of the other place of business, or his agent or principal, containing the prescribed particulars in the prescribed form i.

Form F obtained from the prescribed authority. If the dealer fails to furnish such declaration, then, the movement of such goods shall be deemed to have been occasioned as a result of sale.

VAT implications on intra-state stock transfer | Value Added Tax | Taxes

If the tax authority is satisfied after making such inquiry as he may deem necessary that the particulars contained in the declaration furnished by a dealer are true, he may make an order to that effect.

Thereupon, the movement of goods to which the declaration relates shall be deemed to have been occasioned otherwise than as a result of sale. Thus F form is required to be produced as proof.

As per section 6A 1 submission of F form is mandatory to prove stock transfer. Otherwise, the transaction will be treated as sale for all purposes of CST Act.

With effect from 11th May ,. There are no restrictions in getting the Form- F if dealer is not registered but in most of the States, there is no provision for obtaining Form-F from the department without obtaining registration under CST Act therefore practically form-F can only be issued to registered Dealers.

Yes, With effect from 10th November it is mandatory to file form-f for all the movement of goods of a state which have taken place otherwise than in pursuance of sales, because in section 6A of CST Act, it is mandatory to submit form F in all movements of goods from a state which have taken place otherwise than in pursuance of sale.

Therefore F Forms are mandatory for all transactions of inter state transfers not by way of sale including job work and goods return.

IMPACT ON STOCK TRANSFER UNDER GST

As per section 6A 2 , if assessing authority is satisfied after making enquiry that the declaration furnished by the dealer are true , he shall make an order to that effect and thereupon, the movement of to which the declaration relates shall be deemed to have been occasioned other than as a result of sale. Therefore submitting F form is not a conclusive evidence per se to prove beyond doubt any stock or branch transfer. The assessing officer may make enquiry as to whether declaration furnished by dealer are true or not.

But once sales tax authority investigated and if he is of the opinion that the movement of goods is an interstate sale and not stock transfer it would be deemed conclusive evidence. It is monthly because first Proviso to Rule 5 of CST Rules provides that one F form covering receipts during the month can be issued. If space in F form is not adequate, a separate list may be attached as annexure to form F giving details, provided that the annexure is firmly attached to the form.

Whether Form F is required when goods transferred within state? Branch transfer within state is matter of State VAT law and No form F is required and there would be no VAT implication also. Online classes for CA CS CMA. Alternatively, you can log in using: Registered members get a chance to interact at Forum, Ask Query, Comment etc. Member Strength and growing.. Published in VAT Views: Other Articles by - CA Chandra Kishore Bajpai Report Abuse.

Central Sales Tax Act, Taxability of Branch Transfer and Sale Preceding to Export

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