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Cst tax with/without form c for resale of generators

This query is : Resolved 

13 October 2011 We comes under TN VAT Act (Registered dealer in Tamilnadu). We are planning to sell our used Generator to Kerala (Cochin). My query is

1. Shall we sell the same under CST (Interstate sales) mode or not

2. If yes, what is the rate of CST with / without Form "C".

3. If No, how can we sell to them under CST/VAT Tax.

3. Can we mention the name of item like resale of used generators or how can we mention the item name in invoice.

4. Our buyer going to use our used generator for their upcoming new hotel in Kerala. They can treat this purchase as an asset or not.

Can you please clarify the above.

With Regards
R Saravanan

14 October 2011 you can sell under cst mode by charging CST @ 2% ( Against C Form )

you should mention machinery or Generator..

The product sold should be mentioned in your Registration Records or Products.

You can also sell directly without Form C by charging local tax rate applicable to the product in TN.5% OR 12.5%.

The buyer can include the purchase in fixed asset category..


18 October 2011 Dear Mayur,

Thank you for your reply. Our buyer told that their sales tax authorities said that, their was no option for purchase against Form "C". Why because they are doing hotel business, the generator purchase not comes under the manufacturing purpose.

How can we get clarified for the same comes under the manufacturing purpose.

Can you guide us.




18 October 2011 Mr. Saravanan

As you said the purchaser is in the hotel business. Then he must be having restaurent facility.. Food preparation and selling comes under vat ..It is a manufacturing process.. To carry this activity effectively Generator is required for electricity support...

AS per my opinion the purchaser can apply for c form...



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