18 April 2014
Sir a company purchases most of its equipment and related stores, spares and cosummables from a state in India. The company office & Store are located in a Union Territory where these materials are received and GRVs are raised for accounting. However all the business activities involving the equipment and related items are in the neighbouring state from where the purchases were made. These items are issued and taken from the store to the operational site and used / consumed. Now question is whether C forn can be issued to the suppliers? The tax rates are different for the UT and the state. Grateful for a reply with reasoning.
CAclubindia
