15 September 2008
We have been buying Personal Protective Equipment (PPE) and other safety related items like fire extinguishers, safety shoes, spectacles, tyre protection chasis etc.against concessional sales tax of 2% for use in the plant. Please inform whether we can issue form C for the purchases or shall we have to pay the differential tax to the vendors.
15 September 2008
The department has disallowed in the earlier years and raised demand stating that we have misused the C forms. The department's argument is that the safety related items are not directly/indirectly connected to production activities. If possible, some relevant cases/sections may be quoted.
CAclubindia
