we are purchasing material from our supplier (from Himachal Pradesh). the supplier has raised invoice inclusive of all taxes. now the supplier is asking for form c.
if we (Rajasthan) issues form c to the supplier (Himachal Pradesh), will there be any tax liability on us???
P.S. the goods are then sold out again for consumption and not for further sale.
plz reply with concerned section.
thanx
It is a simple interstate purchase transaction. You can issue form C. There is no tax liability as such for issue of C form.
When the goods are sold by you for consumption (whether it is a local sale or inter state sales) it is a subsequent transaction after purchase and you would have paid the applicable tax on your sales.
The above two are independent transactions and you can issue form C even if the purchased goods are meant for re sale and not for use in manufacture.
I dont think it is the right answer, It is also advisable to acquire basic knowledge of VAT/CST/ Sales Tax levy. You can refer following site for basic knowledge. I am sure you would be able to get the answer.
dateyvs.com
Regards
B. Balaji Rao
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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