Issue of c forms

[Guest]

My query is in the execution of works contract ,in the movement of goods from one state to another whether c form can be issued by customer

[Mahir S]

Goods involved in works contract’ have been included in definition of ‘sale’ w.e.f. 11-5-2002.

[YAGAY andSUN]

Dear Sameena,

Yes, works contract is deemed as sales, therefore, if goods are used by a registered dealer in execution of works, then, concessional rate of tax can be allowed. C form can be issued provided such goods are duly incorporated in the RC of the contractree.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Deemed sale of works contracts permits C form issuance and concessional tax where goods are incorporated in the contract RC. Goods used in a works contract are treated as deemed sale; a registered dealer supplying goods incorporated in the contract RC may obtain a C form and claim concessional tax treatment for the inter state movement of those goods.