CONSIGNMENT SALES OR STOCK
TRANSFER
UNDER CST ACT 1956 AGAINST
FORM F
Under
Section 6-A (1) of the Central Sales Tax Act, 1956 a dealer may transfer his
goods to his agent or depots in other states other than by way of sale which is
called consignment sales or stock
transfer.
Similarly
goods may be sent from head office to their branches in other States and from
branches to head office in other States.
Similarly
goods may be sent from the head office to their manufacturing units in other
states and from manufacturing units to the head office in other State.
In all
above cases goods were moved from one State to another State and delivered in
another State without a Sale
As there
is no sale involved, the transaction is eligible for exemption under the
Central Sales Tax Act, 1956.
For that
purpose Form F has to be produced to the Department each month.
Form F is
to be issued by transferee of goods to transferor.
The
transferor of goods can claim exemption from CST on submitting the Form to the
department.
This Form F is
compulsory for claiming exemptions on the Stock
Transfer or Branch Transfer i.e. for consignment sales.
In the absence of
Form F,
all
such transfers will be
treated as normal interstate sales and CST will be levied.
Single
Form F may cover transfer of goods by a dealer, to any other place of his
business or to his agent or principal, as the case may be, effected during a
period of one calendar month.
If the
space provided in Form F is not sufficient of making the entries, the
particulars specified in Form F may be given in separate annexures attached to
that form so as it indicated in the form that the annexures form part and every
such annexure is signed by the person signing the declaration in Form F.
The above
inward transactions which requires Form F should be disclosed in Annexure 10 of the Form
I Monthly return as List of Inter-State Branch Transfer and Consignment
Transfer Inward with types of transfers
i)
Value
of Inward Transferred by Branch Transfer
ii)
Value
of goods Inward Transferred by Consignment Transfer
iii) Value
of goods Inward Transferred either by Branch Transfer or Consignment Transfer.
When the particulars in Annexure 10 is
filled, Form I Return will be filled automatically in Sub-Column A-Inter-State
Stock Receipts, B-Inter-State Consignment Transfer Receipts and C-Total
Inter-State Stock Inward and Receipts of Column 3 of Section A i.e. Details of Total Inter-State
Branch Stock Inward.
As per
Rule 4 (3-A) of the Central Sales Tax (Tamil Nadu) Rules, 1957 every principal,
who claims exemption on the sale of goods on consignment account through agents
outside the State, shall maintain the following records, namely:--
(a) a register showing the name and full
address of the agent to whom goods were consigned together with description of
the goods so despatched for sale, on each occasion and their quantity and
value;
(b) the originals of authorisation sent to the
agent for sale of the goods
(c) the originals of the written contract, if
any entered into between the principal and the agent;
(d) copies of bills issued by the agents to the
purchasers;
(e) pattials, i.e. accounts rendered by the
agents to the principals from time to time showing the gross amount of bill and
deduction on account of commission and incidental charges;
(f) extract
of ledger account of the principal maintained in the books of the agents duly
signed by such agents;
(g) copies of railway or lorry receipts under
which the goods were so despatched; and
(h) A register showing the date and mode of
remittance of the amount to the principal.
The outward transactions for which requires
Form F is to be received from the person to whom the goods were sent should be
disclosed in Annexure 24 of the Form I Monthly return as List of Inter-State
Branch Transfer and Consignment Transfer Outward with types of transfers
i)
Value
of Outward Transferred by Branch Transfer
ii)
Value
of goods Outward Transferred by either by Consignment Transfer.
When the particulars in Annexure 24 are
filled Form I Return will be filled automatically in Sub-Column B of Column 4
of Section B i.e. Inter-State Consignment Transfer (Annexure 24) under Details
of Inter-State Branch Transfer and Export.