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Part B : INDIRECT TAXES
48 Tax Treatment of Goods sent to other
States.
Trade Circular 5T of 2009, dated 29-1-2009 :
It appears that the question whether S. 6A deals only with transactions
between agent and principal or whether it deals with transactions which are on
a principal-to-principal basis was not raised before the decision dated 17th
August 2007 in the case of M/s. Ambica Steels Ltd. v. the State of Uttar
Pradesh (All.) It is, therefore, decided that in such cases, declaration
in Form F will be issued as per normal procedure.
There is no change in the views expressed in Trade Cir. 16T of 2007, dated
20th February 2007 that S. 6A will have no application as regards transactions
on principal-to-principal basis.
In the aforesaid Trade Circular dated 20th February 2007, a view has been
taken that when goods are sent to another State for job work or for
manufacturing, etc., the transaction will normally be on a principal to
principal basis with an independent operator and not on a principal to agent
basis.
