Kiosk Purchase

[PONNADA B K RAVIKUMAR]

Sir, we bought a kiosk (Fixed Asset) from the supplier in chennai to delivery to our Hyderabad Branch, so whether he will charges Cst or Vat, if so at What rate ? Pls guide me sir

[CA Rachit Agarwal]

Purchase will be CST purhcase within the ambit of Section 3 of the CST Act, 1956. As the purchase being of inter-state nature.

If you give the "C" against the purchases, then the CST rate will be 2%, however if the same not issued than the tax will be charged at the VAT rate or CST rate whichever is higher.

C Form i.e concessional rate purchases will be made only if the item purchased is for the trade nature or consumption in the production of finished goods. Purchase of goods for the use of the office purpose, "C" Form cannot be used.

[PONNADA B K RAVIKUMAR]

This  was a Fixed Asset where we sell our products and Coffee, so can we issue c form and ask the supplier to charge Cst. Is it ok

AI Summary

CST applicability on interstate purchases: concessional form may apply only for goods used in production or trade.
Interstate purchase of a kiosk falls within Section 3 of the CST Act and is subject to Central Sales Tax; if the buyer furnishes a C Form the supplier may charge CST at the concessional rate, otherwise tax applies at the higher of VAT or CST. The C Form concession is confined to purchases of goods for trade or for consumption in the production of finished goods and does not apply to purchases for office use. Whether a kiosk used to sell products and coffee qualifies for C Form treatment determines entitlement to the concessional CST rate.