Can C form issued without Excise Value

[Bunty Valliya]

Dear Sir,

We are only service provider of Generator & registered under Service Tax & VAT. We bought generators as capital goods against form C, including excise duty value. And as we are service provider, we use EXCISE DUTY as input in service tax returns. Now we had issued C form for generators on basic value(i.e. without excise duty).

Kindly advise is there any relevant judgement in support of the above case, which proves there's no need to change the C-form.

Regards

Bunty

Mb:7011557912

[YAGAY and SUN]

Through your query we understand that you have sold the Gen Set on the basic value plus CST at applicable rate prior to GST Regime. In our view you need to pay the excise duty after deducting the 2.5% depreciation on the CENVAT credit amount per quarter.

[Bunty Valliya]

Sir

We bought genset, and having invoice mentioned excise duty and vat. But we are providing services for rental of genset. Can we issue the C form only for basic value of invoice...?

[YAGAY and SUN]

You mean to say right to use.

[Bunty Valliya]

Sir

We bought genset from Mahindra against C form, for that we had received invoice having basic value+ excise duty+cst2'/.

And we treated this purchase as capital goods against C form and utilities excise duty in service tax input.

Then we don't sell the genset, we only provide the genset on rental basis and charge services tax from customers.

And now I had issued C form to Mahindra for basic value only.

But they denied to accept it. They want C form having total value of invoice, i.e. basic+excise+cst2'/.

[PGVENKATA SUBRAMANIYAN]

Form C shall be issued only for Taxable Value or assessable value. In other words the value on which CST 2% charged. Otherwise AO may reject the Form C because of defect value.

[SHIVKUMAR SHARMA]

I agree with the View of Mr.S Subramaniyan

[SHIVKUMAR SHARMA]

Sorry, please read the Name of Expert Mr PGVENKATA SUBRAMANIYAN instead of Mr.S Subramaniyan .

[YAGAY and SUN]

In our views C Form is required to be issued for the Taxable Value (i.e. Total value - CST @ 2% = Taxable Value).

[KASTURI SETHI]

M/s.YAGAY and SUN,. Dear Sirs, The element of Service Tax should not have been the part of query. Form C and Service Tax are not linked at all. Am I right ? Pl. Reply for enrichment of my knowledge. Thanks and Regards. K.L.Sethi

[DR.MARIAPPAN GOVINDARAJAN]

What Kasthuri Sir says is correct.

[YAGAY and SUN]

There are plethora of judgments which says the C form must be issued net of tax levied. Even Haryana VAT Department/ Delhi VAT Department had issued clarification/Advance Rulings on this matter. If required we can share.

AI Summary

C-form issuance should reflect taxable assessable value net of embedded taxes, ensuring correct inter-state VAT documentation.
Issue: whether a C form may be issued for only the invoice basic value when the invoice separately records excise duty and CST. Practical guidance: C form is to be issued for the taxable or assessable value (the value on which inter state VAT/CST is levied), i.e., net of taxes levied; service tax treatment of excise is not relevant to the C form, and issuing a C form with a value inconsistent with the taxable value risks rejection by authorities or refusal by the seller.