C form issue
This query is : Open
25 May 2015
Dear Sir,
I am purchasing generator from Silvasa to Pune. Under Rate of schedule I CST rate is 0%.
Is it required to issue C Form against this purchase ?
I am purchasing generator from Silvasa to Pune. Under Rate of schedule I CST rate is 0%.
Is it required to issue C Form against this purchase ?
25 May 2015
Yes, A registered dealer is eligibile to purchase goods on Nil/ concessional rate in case of interstate purchase only if he is able to issue Form C to selling Dealer. It is immaterial that rate is 0%,1% or 2%. If you are not eligible to issue Form C for this purchase then normal rate of Union Territory of Dadra and Nagar Haveli VAT will be applicable.
In legal terms, As per section 8(1) (b) of CST Act 1956 sales tax on interstate sales is 2% or state rate whichever is lower, if the sale is to a registered dealer and goods are covered in the registration certificate of the purchasing dealer. Otherwise the tax applicable is the state rate applicable on the goods sold. If the selling dealer pays CST @ 2% i.e @ concessional rate then he has to produce proof to his sales tax assessing authorities that the purchasing dealer is eligible to get these goods at concessional rate. Otherwise the selling dealer will be asked to pay balance tax payable plus penalty as applicable. Therefore section 8(4)(a) provides that concessional rate is applicable only if purchasing dealer submits a declaration in prescribed form
In legal terms, As per section 8(1) (b) of CST Act 1956 sales tax on interstate sales is 2% or state rate whichever is lower, if the sale is to a registered dealer and goods are covered in the registration certificate of the purchasing dealer. Otherwise the tax applicable is the state rate applicable on the goods sold. If the selling dealer pays CST @ 2% i.e @ concessional rate then he has to produce proof to his sales tax assessing authorities that the purchasing dealer is eligible to get these goods at concessional rate. Otherwise the selling dealer will be asked to pay balance tax payable plus penalty as applicable. Therefore section 8(4)(a) provides that concessional rate is applicable only if purchasing dealer submits a declaration in prescribed form
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25 May 2015
Dear Sir,
Thanks for your reply.
Just I want to know that is generator covered under the Electrical & Electronic items ?
Thanks for your reply.
Just I want to know that is generator covered under the Electrical & Electronic items ?
25 May 2015
Is it a power generator/ DG set?
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