Issue of Form C

[Guest]

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.

[CA Rachit Agarwal]

As the transformer being the capital goods and directly related to your manufacturing activity hence issue of C Form is permissible.

AI Summary

Issue of Form C allowed for capital goods used in manufacturing; transformer purchase qualifies for concessional interstate treatment. Whether a manufacturer may issue Form C for a transformer procured for power supply used in manufacturing. The transformer is a capital good directly related to production, and issuance of Form C for the supplier is therefore permissible, permitting concessional interstate tax treatment.