Central sales tax
This query is : Resolved
28 April 2014
what are the different declaration forms and certificates used for the purpose of central sales tax and what are their uses?
28 April 2014
1 C: To Avail concessional Rate of Tax @2%
2 E1: Exemption from tax in case of CST sale in Transit (subsequent sale)
3 E2: Exemption from tax in case of CST sale in Transit (Further subsequent sale)
4 F: Exemption from Tax in Stock Transfer to Branch, Depot, Consignment agent etc.
5 H: Exemption from tax in case of Deemed export sale
6 I: Exemption from tax in case of CST sale to SEZ Developer/SEZ Units
7 J: Exemption from tax in case of CST sale UN, Diplomatic Mission etc.
2 E1: Exemption from tax in case of CST sale in Transit (subsequent sale)
3 E2: Exemption from tax in case of CST sale in Transit (Further subsequent sale)
4 F: Exemption from Tax in Stock Transfer to Branch, Depot, Consignment agent etc.
5 H: Exemption from tax in case of Deemed export sale
6 I: Exemption from tax in case of CST sale to SEZ Developer/SEZ Units
7 J: Exemption from tax in case of CST sale UN, Diplomatic Mission etc.
28 April 2014
Form C
All the registered dealers will issue 'Form C' at the time of purchasing goods from another registered dealer. The issue of 'Form C' by the purchasing dealer will ensure that the goods being purchased are covered under his registration certificate and the CST can be charged at lower rates by selling dealer. The selling dealer, on the basis of this 'Form C', charges CST @ 2% or lower rate as applicable and submits the same to his assessing authorities as a proof or cause for lower collection of CST.
For example: Assume that the local sales tax rate is 4%. The sales made in the course of interstate trade, will attract levy of CST at the rates as applicable for local sales. But for any registered dealer on submission of declaration in 'Form C', the CST will be charged at 2% (4% or 2% whichever is lower). Otherwise dealer will be required to pay CST at local sales tax rates (@4%) if 'Form C' is not issued.
à The submission of Form C is mandatory and one Form can cover all transaction in each Quarter
à Separate Declaration of Form C required for each Quarter.
à Submission of Form C on quarterly basis to the Commercial Tax Authority is mandatory.
Form E1
Form E1 is used for making subsequent sales in the course of interstate sale/purchase by the first or original purchaser of goods. This Form should always be accompanied with 'Form C'. The Form E1 is used for first subsequent sales by transfer of document of title to goods.
Form E1 is issued by the selling dealer to the dealer who is making subsequent sales for claiming the exemption from payment of CST to the subsequent buyer. The first subsequent seller of goods receives 'Form E1' and submits it to the department to claim exemption from CST for any sale made to other interstate registered dealer.
Form E2
Form E2 is used for claiming the exemption from payment of CST. In case where the registered dealer purchases goods from one registered inter-state dealer and sells the same while in transit, to another registered inter-state dealer, the sales will be exempted from CST on submission of 'Form E2' to the department. The 'Form E2' is used to claim exemption from payment of CST to the seller who is a subsequent or last inter-state dealer of goods.
Form F
Form F is used for claiming exemptions on the interstate movement of goods as Stock/Branch Transfer, transfer to consignment agent or goods sent outside the state for job work also. The 'Form F' is issued by the Branch or Agent who is receiving goods from another state to the Transferor of goods. The transferor of goods can claim exemption from CST on submitting the Form to the department.
This 'Form F' is compulsory for claiming the transfer as Stock/Branch Transfer and no Tax/CST will be paid. In the absence of 'Form F', all such transfers will be treated as normal interstate sales and CST will be levied at the rate applicable. The Dealer has the option to submit one 'Form F' for all the interstate Stock/Branch Transfer for a month with supporting annexure if required.
àOne Form F for one month is required while Form C can cover transactions for the quarter.
à The submission of Form F is mandatory .
à Separate Declaration in Form F required for each Month.
à Submission of Form F on quarterly basis to the Commercial Tax Authority is mandatory.
Form H
Form H is used by the seller for claiming the exemption on making penultimate sales (immediately preceding sale to exports). Sales made during the course of export are exempt from CST. The penultimate sale is also deemed to be in course of export and is exempt from CST. The dealer exporting goods will have supporting documents like customs documents, bank certificate, airway bill/bill of lading, shipping bill etc. However, the penultimate seller will not have any direct evidence to prove that the sale made is exempt from tax. In such cases, the actual exporter has to issue a certificate to the penultimate seller in form H.
àProvisions applicable to Form C are applicable to Form H also.
Form I
Form I is used for claiming the exemption from CST on the sales made to any Special Economic Zone (SEZ). The buying dealer issues 'Form I' to the selling dealer. The selling dealer needs to submit the same (Form I) to the department to claim all the export benefits available to original exporter in SEZ area.
Provisions applicable to Form C are applicable to Form I also.
Form J
Form J is used for claiming the exemption of CST in case of Interstate sales made to any United Nations, Diplomatic Missions etc. The Form is issued by purchasing dealer to the selling dealer. The selling dealer submits this Form to the department to claim the exemption.
All the registered dealers will issue 'Form C' at the time of purchasing goods from another registered dealer. The issue of 'Form C' by the purchasing dealer will ensure that the goods being purchased are covered under his registration certificate and the CST can be charged at lower rates by selling dealer. The selling dealer, on the basis of this 'Form C', charges CST @ 2% or lower rate as applicable and submits the same to his assessing authorities as a proof or cause for lower collection of CST.
For example: Assume that the local sales tax rate is 4%. The sales made in the course of interstate trade, will attract levy of CST at the rates as applicable for local sales. But for any registered dealer on submission of declaration in 'Form C', the CST will be charged at 2% (4% or 2% whichever is lower). Otherwise dealer will be required to pay CST at local sales tax rates (@4%) if 'Form C' is not issued.
à The submission of Form C is mandatory and one Form can cover all transaction in each Quarter
à Separate Declaration of Form C required for each Quarter.
à Submission of Form C on quarterly basis to the Commercial Tax Authority is mandatory.
Form E1
Form E1 is used for making subsequent sales in the course of interstate sale/purchase by the first or original purchaser of goods. This Form should always be accompanied with 'Form C'. The Form E1 is used for first subsequent sales by transfer of document of title to goods.
Form E1 is issued by the selling dealer to the dealer who is making subsequent sales for claiming the exemption from payment of CST to the subsequent buyer. The first subsequent seller of goods receives 'Form E1' and submits it to the department to claim exemption from CST for any sale made to other interstate registered dealer.
Form E2
Form E2 is used for claiming the exemption from payment of CST. In case where the registered dealer purchases goods from one registered inter-state dealer and sells the same while in transit, to another registered inter-state dealer, the sales will be exempted from CST on submission of 'Form E2' to the department. The 'Form E2' is used to claim exemption from payment of CST to the seller who is a subsequent or last inter-state dealer of goods.
Form F
Form F is used for claiming exemptions on the interstate movement of goods as Stock/Branch Transfer, transfer to consignment agent or goods sent outside the state for job work also. The 'Form F' is issued by the Branch or Agent who is receiving goods from another state to the Transferor of goods. The transferor of goods can claim exemption from CST on submitting the Form to the department.
This 'Form F' is compulsory for claiming the transfer as Stock/Branch Transfer and no Tax/CST will be paid. In the absence of 'Form F', all such transfers will be treated as normal interstate sales and CST will be levied at the rate applicable. The Dealer has the option to submit one 'Form F' for all the interstate Stock/Branch Transfer for a month with supporting annexure if required.
àOne Form F for one month is required while Form C can cover transactions for the quarter.
à The submission of Form F is mandatory .
à Separate Declaration in Form F required for each Month.
à Submission of Form F on quarterly basis to the Commercial Tax Authority is mandatory.
Form H
Form H is used by the seller for claiming the exemption on making penultimate sales (immediately preceding sale to exports). Sales made during the course of export are exempt from CST. The penultimate sale is also deemed to be in course of export and is exempt from CST. The dealer exporting goods will have supporting documents like customs documents, bank certificate, airway bill/bill of lading, shipping bill etc. However, the penultimate seller will not have any direct evidence to prove that the sale made is exempt from tax. In such cases, the actual exporter has to issue a certificate to the penultimate seller in form H.
àProvisions applicable to Form C are applicable to Form H also.
Form I
Form I is used for claiming the exemption from CST on the sales made to any Special Economic Zone (SEZ). The buying dealer issues 'Form I' to the selling dealer. The selling dealer needs to submit the same (Form I) to the department to claim all the export benefits available to original exporter in SEZ area.
Provisions applicable to Form C are applicable to Form I also.
Form J
Form J is used for claiming the exemption of CST in case of Interstate sales made to any United Nations, Diplomatic Missions etc. The Form is issued by purchasing dealer to the selling dealer. The selling dealer submits this Form to the department to claim the exemption.
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28 April 2014
thanks a lot sir....
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