Hire Purchase-CST and TDS

[Binu Karuthedath]

Dear Sir

one registered manufacturer with KERALA VAT , they have to decided the hire purchase of the laser printing machines from Maharastra . They also MH VAT dealer . Can we show this item in KVAT ?and can we issue C Form for the same? . What is the accounting effects in dealer Books .is this transaction is TDS applicable as per IT .

AI Summary

Kerala VAT Dealer Can Use Form C for Leasing Laser Printers from Maharashtra Dealer; TDS Applicable on Lease Rentals A registered manufacturer in Kerala, under VAT, plans to hire purchase laser printing machines from a Maharashtra VAT dealer. The query seeks clarification on whether this transaction can be recorded under Kerala VAT and if a C Form can be issued. The response suggests that the Kerala dealer can purchase the printer on a lease basis from the Maharashtra dealer using Form C, with CST at 2% on the invoice. Additionally, since it is a lease transaction, TDS must be deducted on the lease rentals as per the agreement.