C Form
d. chandra sekhar
(Querist) 08 June 2011
This query is : Resolved
My client has taken VAT and CST registrations in A.P for doing business in Transfer of right to use goods. At the time of taking CST registration, my client mentioned Machinery, Enginees etc., for construction of tug. At the time of applying C forms on these goods ( Capital Goods), the CTO rejected my clinet application, stated that the items mentioned in CST application by the assessee is for resale not for use construction of tug. In that reason he rejected to issue C forms.
My query is whether my ckient is eligible for C forms or not?
If eligible, on what grounds and is there any case laws in this issue. Please clarify, the last date of filing of appeal is 15.06.2011.
regards
D. Chandra Sekhar
Kakinada
APARNA NANDAKUMAR
(Expert) 09 June 2011
Dear Mr.Chandrasekar,
Kindly look into the provisions of Section 8(5)(b) of the CST Act which includes re-sale for the purpose of issuance of C forms.
rgds,
Aparna Nandakumar,
Advocate&TAx Consultant
096001 78450
R.Ramachandran
(Expert) 09 June 2011
Form-C will not be permitted if the goods are going to be purchased for personal use.
Form-C will be issued only if the procured goods are meant for re-sale.
In your case, the problem seems to be that in the CST Registration Certificate, it only talks about use and not for 'resale'.
Therefore, make an application for correction in the CST Registration Certificate. Indicate the Capital Goods in question as for re-sale.
Since transfer of right to use goods is also a 'deemed sale', after the correction in the Registration, I don't think that you will face any difficulty in getting Form-C.
