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C form issue to rate 4%

Umesh (1) (174 Points)

29 November 2013

I Have one query related to C Form.

C Form to be issue for 2% if CST rate charged as 4% and C Form issued then what is benefit saler get.

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Nidhi (---) (38 Points)
Replied 29 November 2013

The issue of 'Form C' by the selling dealer will ensure that the goods being purchased are covered under his registration certificate and the CST can be charged at lower rates. 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% which ever is lower). Even the registered dealer will be required to pay CST at local sales tax rates if 'Form C' is not issued.
Hence, the benefit to the seller is that he will be charged 2% instead of 4%.

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