What is F Form for Sales Tax, Form F Use & Collection Process

Notes on Form F meaning, Definition & Uses under Sales Tax & Branch Transfer with collection Procedure within Time Limit in India in word / .doc Format

FORM – F

1. The F Form is mandatory. Materials which are usually transferred from Factory / branches to a particular branch are not considered as interstate sales, if FORM – F is submitted to Sales Tax authorities against the transaction.

2. All the transaction took place in a particular month can be accommodated in one FORM – F.

3. FORM-F is to be furnished to the sale tax department within 3 months after the end of the quarter to which the FORM relates.  This amendment has been made with effect from 01.10.2005. Prior to this amendment the FORM could be furnished before the sale tax officer upto the time of assessment.

4. Date of receipt of material is immaterial. So the Document No & Date of the originating branch (Despatch Date) should be taken into reckoning for the issuance of F – FORM.

5. If the necessary FORM – F is not submitted, The Sale Tax Department is entitled to consider this transaction as interstate sale made to an unregistered dealer & can impose Central Sales Tax @ 10% or VAT rate of that state, whichever is higher.

6. For Non Submission of FORM – F Sales Tax Authority may levies penalty upto 2 times plus interest @ 24% of the Tax Rate applicable for sale to unregistered dealer in Transferee State.

Procedure for Collection of FORM – F

1. Respective branch show the figures of stock transferred & stock received in their returns (Monthly / Quarterly) submitted with the Sales Tax Department along with the necessary details.  On the basis of this information, application should be made to the sales tax department for the issuance of the FORM – F, immediately after the end if a particular month/quarter.

2. Regular follow up should be made with our Sales Tax Consultant / Sates Tax Department for the issuance of FORM – F.

3. If the FORM – F is not received by the transferor branch / factory within a period of 4 months from the date of despatch of the material, the matter must be brought into the notice of Higher Management during the monthly Factory / Marketing Meet & necessary actions will be taken against concern branch.

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