Form c

Manikantan (Sr Exe accounts and Finance)   (34 Points)

05 August 2011  

Hi all Am working with an Italian Company and we have all kinds of registrations like VAT, IEC , etc .....

So  I am posting a writeup made by me through this and kindly reply me about the relevancy of my understandings in the subject of Form C..

I am mentioning my Company name is ABC India Ltd and the ffice is located in Bangalore

 

FORM C

 

ABC India is eligible to Make Local Purchases with in India

 

ABC India is eligible to make Local Sales with in India

 

To make local purchases with in India outside Karnataka --- It is against Form C

 

The rate of Tax against Form C is 2% and the rate of entry tax to Karnataka is 2%

 

Form C is issued by the purchaser to seller of goods in case of purchases with in India and outside of the state where the office is located in order to charge the seller sales tax at lesser rate

 

C form is a Form supplied by Vat office of the Purchasing dealer having CST registration.    C form is used to get goods purchased from outside the state at concessional rate of Central Sales Tax. And now it is filling through Online. We can issue C form to the supplier either annually or per transaction wise. And it has to be done after the purchase was made.

 

For ITR India, the C Form is filled through online www.vat.kar.nic.in  , in this we have to fill all the details relating to the purchase like name and address of the seller , invoice no & date, value, commodity, descripttion of commodity, purpose, PO Number & date. Then we can submit and get the online C Form acknowledgement.

 

The rate of tax on interstate sales is governed by Central Sales tax Act and if the sale is made to a registered dealer of the state then the rate of tax is 2% but the registered dealer (i.e.) the purchaser have to supply C-form to the seller. The rate of tax without C-form in case of interstate trade or commerce is equal to the rate of tax applicable in the state of the seller

 

So after these amendments, tax rates in various possible situations have been explained in the table given below.

 

SL No

Particulars

With C Form

Without  C Form

1

If the goods are exempted from tax unconditionally

Nil

Nil

2

If the VAT rate in the state from which material sold, is less than the Normal CST Rate at present CST rate 2%

VAT rate of the state from which goods sold will be applicable

VAT rate of the state from which goods sold will be applicable

3

If the VAT rate in the state from which material sold, is more than the Normal CST Rate at present CST rate is 2%

2%

VAT rate of the state from which goods sold will be applicable

4

Sale to an Unregistered Dealer

N/A

VAT rate of the state from which goods sold will be applicable

5

Sale to an Registered Dealer

2% or State VAT Rate , whichever is less

VAT rate of the state from which goods sold will be applicable