c form

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R.Maheshkumar (Querist)

28 August 2010 i hv purch. capital goods in chennai and supplied in mumbai initially they charged 2%cst aginst c form but later on cancelled and charged @12.5%vat saying that against capital goods there is a condition that cform is not to accept for capital goods. is it true? pls clarify.

sachin alwadhi

sachin alwadhi (Expert)

28 August 2010 manufacturer is eligible to purchase capital goods against Form C, if the goods are covered in his registration certificate issued under the CST Act, 1956 and the goods are to be used for sale, that is the goods manufactured or processed by the registered dealer must be the goods intended for sale. It is immaterial whether they are for intended for sale by registered dealer/manufacturer himself or by anyone else. Hence, if you comply with the conditions mentioned above, you would be eligible to procure capital goods against Form C.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 August 2010 C form can be issued if the purchasing goods mentined in the Registration certificate, so there is no such restrictions on issue of C form for Capital goods

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