Government of Andhra Pradesh
Commercial Taxes Department
Office of
the
Commissioner
of Commercial Taxes
Andhra
Pradesh:: Hyderabad.
C.C. NO.10
CCT’s
Ref. No.IST/D1/ OUT/ 31/2012 Dt:
10 -05-2012.
Sri. Suresh Chanda, IAS,
Commissioner of Commercial Taxes.
Sub: CST Act 1956 – Acceptance of ‘C’ and ‘F’ forms covering more than one
quarter or more than one month respectively- clarifications sought by the
trade– Clarifications issued u/s. 77 of APVAT Act, 2005 read with Sec. 9 (2) of
CST Act, 1956- Reg.
Ref: 1. Representation
from M/s. Mahindra & Mahindra Limited, dated 12th March,2012.
2. CCT’s Ref.
Enft- IST/D1/OUT/31/2012 Dated:30-3-2012
3. Govt, Memo
No. 18838/CT-II.1/2012 -1, Rev.(CT.II) Dept., Dt: 4-5-12
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It is brought to the notice that other states are issuing ‘C’ and/ or ‘F’
Forms based on Quarter/ calendar month of receipt i.e. one ‘C’/ ‘F’
Form for all the goods received in a quarter/ calendar month
irrespective of fact of dispatch date of such goods. Because of this, one quarter/
or calendar month ‘C’/ ‘F’ Form may contain deliveries of sales made in that
quarter and also previous month; or stock transfers made in same month and also
previous months respectively. As ‘C’
forms/ ‘F’ forms contains deliveries relating to more than one quarter/ stock
transfer of more than one month respectively, assessing authorities are
rejecting such ‘C’ forms/ ‘F’ Forms and levying VAT as if it is a sale not covered
by valid statutory forms.
In this regard the relevant Rules under CST Act with regard to ‘C’ and
‘F’ forms are reiterated as under:
Regarding ‘C’ Form
Under Rule 12(1) of CST (R& T) Rules, the declaration and
certificate referred to in Sub-Section (4) of Section 8 shall be in Form ‘C”” and two provisions under this
are extracted and read as under:
“Provided
that a single declaration may cover all transactions of Sale, which take
place in a quarter of
financial year between the same two
dealers’
“ Provided also that, where, in the case of
any transaction Sale, the delivery of goods
is spread
over to different quarters in a financial year or of different financial years,
it shall be
necessary to furnish a separate declarations or certificate in respect of
goods delivered in each quarter of financial year’
As per this
provision, the deliveries of goods made as interstate sales during one quarter
of financial year shall be covered by one Form’ ‘C’. Sometimes it may happen
that goods that are dispatched on the last days of a quarter are delivered in
the next quarter and the receiver/ buyer of goods may take the date of receipt
as criteria and issue one Form- ‘C’ for all goods received in that quarter,
irrespective of date of dispatch of goods.
The primary objective
of ‘C’ Form is to ensure that goods are dispatched to other States and same on
accounted for by the dealer of other States. As long as this primary object is
met, ‘C’ form can be accepted as valid. Accordingly it is clarified that Form-C
can be accepted as valid relating to goods delivered in quarter, based on the
date of dispatch or date of receipt of goods in other State or date of invoice
or combination of all the three.
Regarding ‘ F’ Form
Under Rule 12
(5) of CST (R& T) Rules, the declaration referred to in Sub-Section 1 of
Section 6-A in Form ‘F’ The first
Proviso under this sub Rule reads as follows:-
“Provided that a single
declaration 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.”
As per this Proviso, F form has
to be issued in respect of the transfers effected during one calendar
month. In a situation where the goods are dispatched, say on last day of
a month or a last day of the financial year, will be received in the other
state in next month or even in next financial year. The question raised is
under which month the F form has to be issued by recipient state for such
goods? The Calendar month of dispatch of goods or Calendar month of receipt. As
per Rule it should be Calendar month of dispatch. But States are issuing ‘F’
Forms based on receipt of goods.
Section 6A (1) of CST acts puts burden on dealer (Transferor) to prove
that the movement of goods was not by reason of sale and for that
purpose he may produce declaration (F Form) issued by other state. Section 6A (2) of CST Act says that if
assessing authority is satisfied that no inter-state sale has been effected, he
may, make order to that effect.
To resolve the practical difficulties being faced by trade, following clarification
is issued to assessing authorities,
“ once assessing authority is satisfied that all goods dispatched has
been accounted for in other state and transfer is not inter-state sale, he may accept F Form for calendar
month either based on dispatch dates of goods or based on receipt date of goods
in other State or combination of both”
The receipt of the circular instructions shall be acknowledged by
return post.
Sd/-
Suresh Chanda
Commissioner of Commercial Taxes
To
All the Deputy Commissioners (CT)/ all the Assessing authorities in
the State.
Copy to the Chairman, Trade and
Commerce Committee, The Federation of Andhra Pradesh Chambers of Commerce, and
Industry, Federation House, Red Hills, Hyderabad -500 004
Copy to the Stock file 1/2012
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