C Form for items given to customer free of cost

[saket s]

Hi,

• ABC is having manufacturing facility in the state of Maharashtra, ABC sales its goods on pan India basis to its customer through depots.
• ABC also makes interstate purchases for promotional items i.e. goods which will be given to customer free of cost as part of marketing /sales incentive schemes
• These promotional items are first transfer to various depot (as scheme is applicable to PAN India) and ABC does centralized purchases.
• These promotional items given to customer free of cost as sales promotion

The issue is can ABC issue C forms to its vendor for purchasing these promotional items?

Pls enlighten with suitable caselaw.

Saket

AI Summary

ABC Can Issue C Forms for Promotional Items by Amending CST Registration; Free Samples Not Separately Taxed. A manufacturing company in Maharashtra, referred to as ABC, sells goods across India and purchases promotional items to give to customers free of cost as part of marketing schemes. These items are distributed through depots nationwide. The query raised was whether ABC can issue C forms to vendors for purchasing these promotional items. A response clarified that while free samples are not taxed separately, ABC can issue C forms for these purchases by amending its CST registration certificate to include these items as business purchases.