Form 'C'

[Asked by Guest]

We are a 100% EOU based in Bangalore established in 2006. We intend to procure a Goods Transport Vehicle for transportation of our finished goods to the sea port. Our prices being FOB, Sea Port, this transportation is therefore part of the process of sale. Would we be eligible to avail of Sales Tax concession by issue of Form 'C' if we make an interstate purchase of the GTV? Our RC issued by the Sales Tax Dept does not mention GTVs but mentions Plant and Machinery, Equipment etc. Please advise.

AI Summary

False representation in Form C: issuing concessional declarations for non-manufacturing goods risks penalty under central sales tax.
Qualification for concessional interstate purchase under Form C requires that goods be intended for use in manufacture or processing of goods for sale as per Section 8(3)(b) and Rule 13; goods merely connected to distribution, delivery or ancillary functions do not qualify. Vehicles and their spares may qualify where integrally used in interdependent mining-manufacturing operations or essential removal/transport tasks, whereas building materials, hospital equipment, packaging and delivery-related items ordinarily do not. A penal consequence attaches for knowingly issuing Form C for non-covered goods, though a bona fide, reasonably supported belief may negate false representation.