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

Machinery Purchase Under Form C Permitted for Registered Dealers; Ensure Documentation and Concessional Tax Rate Compliance A CST registered dealer in Kerala, engaged in gasket manufacturing, inquired about purchasing machinery using Form C. The responses clarified that machinery can be procured under Form C if it is listed in the CST Registration Certificate under Plant & Machinery. There is no need for a separate application, but details must be included in the CST/VAT return to the Kerala VAT Department. Form C should be issued quarterly, and it is important to ensure the concessional tax rate is applied on the invoice and that all related documentation is securely preserved.