C-Form ( Central Sales Tax Forms)

[Asked by Guest]

Dear All,

According to me, C-form can be obtained from Sales Tax Dept. for the purchase of

1. Inputs used for manufacturing and resale purpose

2. Packing Material for sales and distibution

3. Plant and Machinery ( subject to mentioned in our R.C. )

My query is why C-forms are not available for purchase of Electrical items, Computers, Safety equipment etc.

[YAGAY and SUN]

Dear Salil,

Please refer Rule 13 of The Central Sales Tax (Registration And Turnover) Rules, 1957 which enumerates as following:-

[13. Prescription of goods for certain purposes.- The goods referred to in clause (b) of sub section (3) of section 8, which a registered dealer may purchase, shall be, goods intended for use by him, as raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel or lubricants, in the manufacture or processing of goods for sales or ²[in the telecommunications network or] in mining, or in the generation or distribution of electricity or any other form of power.]

Notes:-

1. Inserted vide SRO 896 dated 23.9.1958.

2. Inserted vide Notification No. G.S.R. 83(E)., dated 11.3.2010.

Please check whether the items mentioned by you duly falls under Rule 13 or not and would be used for the purpose as mentioned in Rule 13 or not?

This is for your kind information.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

C-form eligibility depends on whether purchased goods qualify as inputs, machinery or equipment used in manufacturing or power activities.
C-form entitlement depends on whether purchased goods fall within the categories prescribed by Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957 - namely goods used as raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel or lubricants in manufacture or processing for sale, or for use in telecommunications, mining, or the generation or distribution of electricity; items like electrical goods, computers or safety equipment must be assessed against that Rule to determine eligibility.