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ISSUANCE OF C FORM

This query is : Resolved 

03 August 2007 PL LET ME KNOW WHO ARE ELIGIBLE FOR CLAIMING 3% CST ON INTERSTATE TRANSACTIONS BOTH TRADER AND MANUFACTURER. IF MANUFACTURER IS ELEGIBLE WHAT ABOUT THE POSITION IF THEIR OUTPUT IS TAX EXEMPT ITEM.IF IT IS SO IF THEY CAN PURCHASE THE ENTIRE THING FROM OUTSIDE THE STATE SO AS TO AVOID 12.5 % VAT.

06 August 2007 Dear Sir

Please refer Sec 8 (4) of CST Act 1956 and Rule 12 (1) of CST Rules 1957.

A manufacturer can issue Form C in respect of goods to be used in manufacturing or processing.

If such manufacturers finished goods is exempted, CST paid is paid only.

You want to avoid 12.5% state VAT by replacing CST purchase therefor. Generally all state VAT have EST concept, that is, Every Sales Taxed. Thus please doubly check whether your FG is exempt or not.


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