C-FORM ON GOODS PURCHASE FOR SAMPLE SALE

[Ankit Bhansali]

Dear Expert,

Please Confirm can we give C-form for the goods purchased that has been used for sample not for resale.

[MUKUND THAKKAR]

if the payment is done and books of account shown as purchase than you have to issue the C form, it not concern when and where you have to used.

[Ankit Bhansali]

As per my understanding C-form can be used for the purpose of resale only. As sample sale is free of cost.

[YAGAY andSUN]

Samples cannot be purchased against Form C, unless until such samples are not being used in manufacturing of finished goods, Resale, packaging, Tele communicaiton and generation of electricity.

[debashis gupta]

Dear Sir,

If it is proven that it is not for resale but to be used as sample by documentary evidence, then C form(concessional rate) cannot be used. It is to be purchased full tax rate.

[debashis gupta]

Dear Mr. Kalyani

Yes, you are right. but for the "purpose" pl.note the underlined in the following para as supplied by you.

13. Prescription of goods for certain purposes.- The goods referred to in clause (b) of sub section (3) of section 8, which a registered dealer may purchase, shall be, goods intended for use by him, as raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel or lubricants, in the manufacture or processing of goods for sales or ²[in the telecommunications network or] in mining, or in the generation or distribution of electricity or any other form of power

thanks with regards,

[DR.MARIAPPAN GOVINDARAJAN]

Clear picture is given in respect of Form C. Thanks

AI Summary

Concessional CST eligibility: goods purchased solely as samples not for resale do not qualify for Form C and face full tax. Form C is limited to purchases intended for resale or specified productive uses such as raw materials, processing inputs, machinery, or use in telecommunications, mining, or power generation. Goods procured solely as samples not meant for resale do not qualify for the concessional rate under Form C; documentary evidence of sample use renders the concession inapplicable and the full tax rate must be applied. A conflicting practical view that Form C should be issued where a purchase is recorded was noted but does not override the statutory purpose-based limitation.