ISSUE OF C FORM

[Guest]

My company which is not a manufacturing Company , is carrying out project execution divisible contract in state of Chatisgarh.Our job includes suply, civil and Erection and commissioning for a raw material handling plant which is all offloaded to vendors and sub-contractors. As part of the billing schedule (scope) of the contract, the customer contract includes A. supply of fabricated steel structures 1. relating to plant and machinery 2. relating to building structures .

Fabricated structures are being supplied from outside the state of Chatisgarh by our vendor who is directly dispatching the fabricated structures to the project site in Chatisgarh and billing schedule of customer provides for 2% CST and amount is indicated for the same in the customer contract.

We were informed by our customer that C forms can be issued only for supply of fabricated structures which are used for the purpose of plant and machinery and denied issue of C form relating the supply of fabricated steel structures for Building structures.

Qeries:

1. is the customer right in denying me C form even though it is an inter state supplies under 6(2)b of CST ACt for building .

2.. In case the C for is not issued , what will be the tax implication and in which state the liability is to be discharged and at what rate and to be borne by whom.

3. Whether we can issue Form C to our vendor who is directly despatching to the site. The vendor is billing on us and in turn we are billing on the customer.

AI Summary

C form eligibility for interstate supply: dispute over issuance for building related fabricated structures affecting tax liability. Whether issuance of C form is permissible for interstate supply of fabricated steel structures dispatched directly by a vendor to a project site when the purchaser allows C form only for structures for plant and machinery but denies it for building structures. Facts: non manufacturing contractor on a divisible contract with vendors supplying and directly dispatching fabricated structures from outside the State; contract distinguishes plant and machinery structures from building structures and provides central sales tax treatment. Queries concern denial of C form, resulting tax liability, applicable State and rate, and whether the contractor can issue C form to the vendor.