A company makes purchases from outside state and carried out Research and Development work for its parent Company located outside India. Can it issue form C for purchases made from outside state?
Is the Company eligible for availing Input Tax credit, since it doesnot sell any material which would be subject to tax?
For R&D purpose, the C Forms are normally not eligible. But if the same machinery/equipment is used for manufacture of the new product and kept in the manufacturing site, it is eligible. Input tax credit is not allowed for interstate purchase of any materials, capital goods etc.,
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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