CST on Resale of WindMill

[Guest]

I am having a query on resale of Windmill.

 

Our windmill is situated in state of  Rajasthan, Our VAT/CST Reg is in the state of Gujarat and we want to resale the said windmill to the customer in the state of Maharashtra.

My Query,

(1) Whether I can charege CST on Resale treatin the Wind mill as my plant & machinery and issue a C Form to the buyer?

(2) If the buyer is not willing to buy under CST than at what percentage am I suppose to charge the sales tax?

Waiting for the answer

Thanks and Regards

Himanshu Mehta

[email protected]

[YAGAY andSUN]

On sale of Windmill, in my opinion, CST will be applicable:-

1. CST @ 2% against Form 'C', if electricity generated by this windmill is being used for manufacturing of final proudct or
2. Full rate of CST @ 14% +1% (Gujarat VAT rates)will be applicable if the buyer is not able to provide you with a C form.

Thanks & Best Regards,

 

Pradeep Khatri

 

[Guest]

Sir, Can you tell me that hw this 14% derived?

 

Regards,

Himanshu Mehta

[YAGAY andSUN]

It has been derived from the GVAT Tax Schedules.

[Guest]

Sir, I have gone through 2nd schedule but I could not find the same. Sir, I request you to kindly share the further information on this.

Thanks in anticipation for your quick support.

 

Regards,

Himanshu Mehta

[YAGAY andSUN]

Kindly check the latest tax schedule No. II and check the last entry number of the Schedule in this regard or get it confirmed from your counsel or from the VAT Department.

 

AI Summary

Interstate sale of plant and machinery: C Form may permit concessional CST, otherwise local VAT rates apply. Where an interstate resale of a windmill is treated as sale of plant and machinery, CST may apply at a concessional rate if the buyer furnishes a C Form and the generated electricity is used for manufacturing; absent a C Form the seller should charge the applicable Gujarat VAT rates as per the state tax schedule, and parties should verify the precise schedule entry and current rates with counsel or the VAT department.