PROCEDURE FOR PURCHASING MACHINERY IN C FORM

[Guest]

SIR,

I AM A CST REGISTERED DEALER (KERALA) & DOING GASKET MANUFACTURING BUSINESS.

I WANT TO PURCHASE A MACHINERY (FOR PRODUCTION PURPOSE).

WHETHER I CAN PURCHASE THE MACHINERY IN C FORM?

FOR THIS PURPOSE, WHETHER I HAVE TO GIVE ANY APPLICATION IN SALES TAX OFFICE ?

WHETHER MY MACHINERY BLOCKED IN THE CHECK POST FOR CAPITAL GOODS ISSUE?

PLEASE TELL ME THE WHOLE PROCEDURE FOR PURCHASING A MACHINERYIN C FORM.

[YAGAY andSUN]

You can procure Machinery against Form C provided in your CST Registration Certificate such machinery's name or class of goods i.e. Plant & Machinery must be incorporated before such procurement. No need to submit any separate application in this regard. However, which filing CST/VST Return, information regarding procurement of such machinery must be provided to the Kerala VAT Department.

Form C is required to be issued on quarterly basis.

[Ganeshan Kalyani]

It need to be taken care that concessional rate of tax should have been levied on invoice. Documentation need to preserved in safe custody.

AI Summary

Concessional purchase under Form C allows CST-registered dealers to procure plant and machinery with tax relief when recorded in registration. CST-registered dealers may procure plant and machinery at the concessional rate using Form C when the machinery class is recorded in the CST registration certificate; no separate sales tax office application is required. The concessional rate must be shown on the invoice, procurement must be reported in CST/VAT returns to the Kerala VAT Department, Form C should be issued quarterly, and all related documentation must be preserved.