Issue of Form C

[CHITRA RAGURAM]

A company is engaged in the manufacture of Iron & Steel. It puts up a transformer for power supply at a cost of Rs. 1 crore approximately. Whether the company can issue form C for the transformer supplier.

AI Summary

Company Can Issue Form C for Transformer Purchase as Capital Goods for Manufacturing A company involved in manufacturing iron and steel inquired whether it could issue Form C for purchasing a transformer used for power supply, costing approximately Rs. 1 crore. The response from a chartered accountant clarified that since the transformer qualifies as capital goods directly related to the manufacturing activity, the issuance of Form C is permissible.