CST on Design Soft ware

[Pradeep Jain]

Dear Sir,

 

We are having manufacturing unit at TamilNadu and  purchased design software from Chandigarh. Supplier has charged CST.

 

Can C form be issued for this purchase?

 

Regards

 

Pradeep Jain

[YAGAY andSUN]

Generally C form can be used for following purchase, namely:-

1. Use in manufacturing
2. Process of goods for sale
3. Use in Mining
4. Use in generation/distribution of power
5. packing of goods for sale/resale

Further, please refer Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957 in this regard.

You must have purchased this software for designing the goods, designing is essential for manufacturing but whether this software is being used in factory premises at Tamil Nadu or in the Design wing at chandigard.  For availing the benefit of concessional rate of tax under CST Act, you would have to prove the nexus.

Further, such software must be incorporated in your CST Registration Certificate before such procurements.

 

AI Summary

C form eligibility for interstate software purchases requires demonstrable nexus to manufacturing use and registration inclusion. Applicability of concessional interstate tax documentation to a purchase of design software for manufacturing is contingent on demonstrable use in the manufacturing process. C form treatment is ordinarily available where inputs are acquired for use in manufacturing or related activities; the purchaser must establish a direct nexus between the purchased software and its manufacturing activity, and the procurement must be incorporated in the purchaser's CST registration certificate as reflected under Rule 13 of the Central Sales Tax (Registration and Turnover) Rules.