CENTRAL SALES TAX UNDER SECTION 3 (A)

[pankaj jain]

I am a Work contractor. I am registered in Madhya Pradesh state under MP VAT Act. I got a contract form Railway Department. According to contract condition , i have to buy goods from railways approved vendors only. I bought many goods form out of Madhya pradesh as per the direction of railway and goods directly transfer on railway side from other states. My question is that - (1) Can i take deduction of this transaction under section 3 (a) of Central Sales tax act and Section 36 of M.P. VAt act. (2) Can i issue the C-form to vendors form Madhya pradesh state

[YAGAY andSUN]

Dear Pankaj,

In our view, a works Contractor can purchase goods on the strength of C form under Section 3 (A) of the CST Act read with Section 36 of the MPVAT Act.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

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AI Summary

Interstate purchase under C-form allows works contractors to obtain inter state sales treatment and VAT deduction. A works contractor registered under the state VAT law may procure goods from out-of-State vendors at the direction of the contracting authority and, where goods are dispatched directly to the purchaser, may purchase on the strength of a C-form under Section 3(A) of the Central Sales Tax Act read with Section 36 of the M.P. VAT Act to claim inter state sales treatment and the corresponding deduction under the State VAT provision.