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Form c on hire charges

CA.Jagannath Patro (CA) (89 Points)

07 February 2013

Hi All Can anybody clarify me whether we can issue Form C on inter-state machinery hire charges ?

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4 Replies

Sonu Kumar (Account Manager) (665 Points)
Replied 08 February 2013

Machinary Hire Charges is a Service not Sale

Can Not Use C Form In This Regard

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CMA Ashutosh Kumar Gupta (Unit Financial Controller) (1015 Points)
Replied 08 February 2013

...while agreing Mr. Sonu, am of the view to check the nature of such transaction whether an effective control as well as possession of such machinery is forming the part of such hiring or not, if yes sales tax applies apart from service tax otherwise only service tax subjected to other conditions of applicability. Thus to determine the "the right to use".

CA.Jagannath Patro (CA) (89 Points)
Replied 08 February 2013

@ Mr.Asutosh, in my case, the transaction satisfies the condition as a deemed sale and its between inter-state . Hence I am 100% sure that CST will apply on that. My only query is whether we can issue form C or not to get reduction in CST rate.