Forklift purchase against C Form and tax credit validity of entry tax, VAT + CST

[Parth Bhatt]

Dear Sir

1)Can we purchse Forklift ( two scenario i) for general use ii) for specific use in manufacturing process ) against C Form with 2% cst ?

2)can we take credit of entry tax paid on purchase of it ? I knw we cant for VAT ITC as it was answerd for VAT credit but want to confirm as its entry tax now in scenario.

3)what to do in case where dealer has not provided Form 403 road permit ? can it be considered local purchase in absense of availability of form 403 ? wt r consequnces/remedies for ds 403 issue

Posts / Replies

[Ganeshan Kalyani]

For query number 2, Pls refer Section 4 (2) of The Gujarat Tax on Entry of Specified Goods into Local Areas Rules, 2001.

[Ganeshan Kalyani]

For query number 1, pls refer below para

Form C:

A registered dealer effecting an inter-State-purchase of good, either for resale, use in manufacture or processing of goods, for mining, for use in generation and distribution of power or use in packing for sale/resale can issue form C for availing of the benefit of purchasing at a concession rate of tax. This form will have to be obtained by the purchasing registered dealer from the Sales Tax Officer concerned.

[Ganeshan Kalyani]

For query number 3, pls refer circular No.Gujka/VAT/Check post/form-402-403-405/2014-15/B.160/138

[Parth Bhatt]

dear sir but does forklift fall under the category of material referred/mentioned in rule 13 of CST Turnover Rules? my understanding is dtentity can issue c form only for those category of item cateogry referred in 1) in their registration certificate and 2) in rule 13 of cst turnover rules

[Parth Bhatt]

Am I correct there ? kindly clarify.Btw thank you so much for ur time and insightful response to both querries I asked.

[Ganeshan Kalyani]

The items to be purchased interstate should be incorporated in the CST registration. Further the said item should be used in manufacture or processing of goods. So Now you have decided whether forklift is included in the certificate and whether it is used in manudacturing or processing of goods. The answer you will get .

[YAGAY AND SUN]

Please also check our earlier discussion on this subject matter.

[Ganeshan Kalyani]

Also refer

#1 Issue Id: - 110908
Dated: 14-9-2016

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

As per the c form is concern, if the vehicle is purchased for the purpose of mining is allowed. My question is that, one of my client is providing services as manpower, digging work and transportation to mining owners. And they are purchasing tipper vehicle against form c from outside tamilnadu. whether as per the cst act is correct or they have to pay full tax and purchase the vehicle.

Whereas they have registered under tnvat and cst act and they sells some of the machinery parts to the mining owners whose engaging their own machines in the mining activities.

Further, they have registered under service tax and paying the service tax promptly. And availing the cenvat credit on the capital goods as tipper vehicles.

If anything wrong kindly clarify.