C form issue
This query is : Resolved
27 January 2016
what is 'C' form, why it is issued against CST and what rate of CST with C form or without C Form
27 January 2016
C Form is a Form issued by the sales tax department to the registered sales tax payer. If he buys any good from another registered sales tax payer and issues a c form to him. Than that other sales tax payer will not charge sales tax from him and sales tax will be collected and deposited by the c form issuer and deposited in the treasury of the govt. It means the issuer of the c form undertakes to pay the sales tax.
It is a interstate sale where the tax would be 2%.
If Cform is not issued then the selling dealer would have to pay differential tax on the sale transactions made by him at the concessional rate of tax. The differential tax would the difference between (i) the rate of VAT applicable on the materials sold in the State of selling dealer and (ii) concessional rate of tax charged in the invoices. For ex., if the selling dealer has sold IT Products at concessional rate of tax @2% against ‘C’ Forms and could not furnish ‘C’ forms issued by the purchasing dealer, he is required to remit the differential tax of 3%, since rate of VAT applicable on IT Products is 5% in most of the States.
It is a interstate sale where the tax would be 2%.
If Cform is not issued then the selling dealer would have to pay differential tax on the sale transactions made by him at the concessional rate of tax. The differential tax would the difference between (i) the rate of VAT applicable on the materials sold in the State of selling dealer and (ii) concessional rate of tax charged in the invoices. For ex., if the selling dealer has sold IT Products at concessional rate of tax @2% against ‘C’ Forms and could not furnish ‘C’ forms issued by the purchasing dealer, he is required to remit the differential tax of 3%, since rate of VAT applicable on IT Products is 5% in most of the States.
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