C form will be issue or not

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jahangir (Querist)
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25 September 2013 Respected Sirs,

I am planning to setup a AC, Refrigerator Manufacturing plant in INDORE - M P.
I will be purchasing, Steel, Camera,pipe etc for construction of factory building and will also
be purchasing Plant and Machinery for the factory.
I intended to examine whether I can issue Form C for the same.

Your valuable guidance is solicited for the same.

CA Abhishek Malpani

CA Abhishek Malpani (Expert)
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25 September 2013 C form is issued by the buyer of the goods who has purchased the goods from outside home state at concessional rate of duty.

If you are purchasing the material/goods at concessional rate of duty from outside MP then you need to issue C FORM to seller.

jahangir

jahangir (Querist)
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25 September 2013 Abhishek ji my question is further i will not re-sale the goods it is only for construction of factory building then can i issue c form after purchasing of material like camera, panel, pipe etc.

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CA Abhishek Malpani

CA Abhishek Malpani (Expert)
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25 September 2013 Yes. Even if you are not re-selling the goods, you need to issue C FORM as you are procuring the goods at concessional rate. Because Seller of the goods needs to prove their sales tax department that those goods are sold at concessional rate because it is outside home state. Unless seller of the goods do not produce C FORM to their sales tax department, they can not prove that sale is outside home state. Hence, you need to issue C FORM. It is irrespective of usage of goods.