- Bribe Hotline
- 8 years ago
- 251 views
The matter here is that: 1. Our customer AB Tools Pvt. Ltd. is entering
The matter here is that:
1. Our customer AB Tools Pvt. Ltd. is entering into an Operating Lease transaction with us
2. The movement herein is inter-state i.e. the equipment shall be coming in from another state into the state of Punjab
3. There will be a CST of 2% applicable on the 1st leg of the transaction (i.e. purchase of equipment by SFSPL) against form C issued by us
4. Subsequently, our vendor shall issue a form E-1
5. Our customer is also a registered dealer in the state of Punjab and hence shall be able to provide us Form Cs (quarterly) against every lease rental
Our customer has issues with the issuance of C forms under operating lease. He mentions that he will only be able to issue a C form if there is a certain asset in his books or if there is a purchase that he can show in his books.
However, this being an Operating Lease transaction, he cannot account for the asset as a purchase in his books and hence there is no asset against which a C form issuance is possible.