C form

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Jnyanesh

Jnyanesh (Querist)
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26 December 2013 meaning of C form

Mohan Babu.L

Mohan Babu.L (Expert)
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26 December 2013 Hi Jnyanesh,
Form C is security printed form and is issued by the State Sales Tax / VAT / Commercial Tax Department to a registered dealer who makes inter-state purchase of goods mentioned in his registration certificate. This form is divided in three portions marked Original, Duplicate and Counter Foil. Purchasing dealer, after making relevant entries and after putting his signatures issues portions marked Original and Duplicate to the selling dealer of the goods, the details of which have been given on the form.
The selling dealer presents Original Copy before its assessing authority for claiming exemption from or reduction in rate of tax, as the law may provide. Irrespective of rate of tax applicable to sale of certain goods within a State, where such rate of tax on sale of such goods within the State is higher than 2%, the purchasing dealer, making inter-state purchase, can, on the basis of Form C, purchase such goods after paying tax to the seller only @2%. In absence of Form-C, purchasing dealer would have been liable for payment of tax at the same rate which is applicable to sale of such goods within the State of selling dealer.
Single Form C can cover transactions of sales made in between same two dealers during the period of one quarter of a financial year.
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