Purchase on C-Form

[Asked by Guest]

Can a Cement manufacturing company purchase IT (Information Technology) related items like Laptop, Software, hard Disks, Cables, Mouse pads etc.... on C-form? Computer Software, Hardware were registered under CST.

[YAGAY and SUN]

If these IT Goods directly or indirectly are being used in your manufacturing activities then you can procure goods against concessional rate of Tax against declaration in Form C.

Sir,

Software were used in Mines, other laptops etc... were used in Accounting i.e., supporting Functions of the Manufacture.

Can you quote case law (If any) for our better knowledge.

[YAGAY and SUN]

Please be aware that if software/computers are being used in manufacturing activities such as controlling the appropriate mixture of Gypsum, Coal, flyAsh etc, monitoring the quality control, supporting the computerised automation, then, it can be purchased against form C. However, using it in Admin/Acconting/HR Functions etc. would be make it to purchase against Form C.

[Ganeshan Kalyani]

Sometime department does not allow to purchase IT products against Form C.

AI Summary

Form C entitlement for IT goods depends on direct use in manufacturing; administrative use excluded.
IT goods qualify for purchase under Form C when directly or indirectly used in manufacturing processes-such as material mixture control, quality monitoring, or computerised automation. IT items used for administrative, accounting, HR or other non production support do not qualify for concessional purchase under Form C. Administrative practice may nonetheless result in denials of concessional treatment.