Girish (Senior Manager) (56 Points)
07 April 2012I am working with a Software Company in Pune, Maharashtra which has no VAT Registration Applicable, in Nov 2009 my company has purchased new computers (Capital Goods) from other state (Bangalore) & C Form was not provided then, now the Supplier is asking for C Form & I am not sure how the same works, being IT Company we do not have any Sales Tax Registered. Can anyone please guide me on following?
1. How can I issue a C Form, whats the procedure for it.
2. DO I need to register for VAT or TIN?
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 09 April 2012
Even if it is a software company it is preferable to have registration under local VAT and also CST to meet this type of contingencies through you would get the option to get 'C'- Forms.
Perhaps you may have to file NIL returns on monthly basis.
kkm
Sunil Kumar G
(AGM Taxation)
(373 Points)
Replied 09 April 2012
Since you are not in the manufacture and trading , you are not suppose to obtain VAT/CST Registration. C Form can issue only for those goods mentioned in the Registration Certificate and used for Manufacturing purpose or re-selling purpose. Since your compnay in Software filed, you are not suppose to buy Computer under C Form. You have to pay full Tax, that means state VAT Rate. Now you can't issue C Form, you have to re-imburse to the vendor with differential tax with interest if he demands. You can issue C Form if you are in trading business of Computers.
Girish
(Senior Manager)
(56 Points)
Replied 09 April 2012
Thanks a lot both of you.. This will help a lot..
CAclubindia
