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

Clarification on Issuing C Form for Software Purchases Related to Manufacturing Under CST Act; Usage Location Matters A manufacturing unit in Tamil Nadu purchased design software from Chandigarh, and the supplier charged Central Sales Tax (CST). The query was whether a C form could be issued for this purchase. The response clarified that a C form can be used for purchases related to manufacturing, processing goods for sale, mining, power generation/distribution, and packing. It emphasized the need to prove the software's use in manufacturing and its incorporation in the CST Registration Certificate. The software's usage location, either in Tamil Nadu or Chandigarh, could affect eligibility for the concessional tax rate under the CST Act.