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Importance of c form

Urjit Talati (Job - Deloitte) (86 Points)

07 March 2016

Can some one tell me the importance of 'C' form under cst act??

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10 Replies

sesha (accounts executive) (1101 Points)
Replied 07 March 2016

c form is used for inter sales or inter state purchase suppose if u made purchase outside that state uwant buy the goods @ 2% cst and uwant give form c to the supplier within 3 months from the date of filing the returns and opposite supplier should have valid tin no

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JOEY TRIBIONI (Article) (200 Points)
Replied 07 March 2016

C form is colleted from a registered buyer so that the tax collected from him is only 2%. otherwise if C form is not recived the seller should collect 5% tax or tax rate applicable. Now in real meaning C form is equalent to 3% Tax(5%-2%)

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Arun choudhary (articalship) (153 Points)
Replied 07 March 2016

if a registered dealer inter state purchase then he can use c form for 2% cst tax. if we cant provide C form then it will be normal Vat rate 5% or 14%

Somnathmukerji (CS) (12 Points)
Replied 07 March 2016

Is there any limitation period to provide C form by the buyer to seller? Plz inform.

Somnathmukerji (CS) (12 Points)
Replied 07 March 2016

Is there any limitation period to provide C form by the buyer to seller? Plz inform.

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NIKUNJ (NIL) (131 Points)
Replied 07 March 2016

C form to be collected from buyer within 3months from the date of invoice.

kartik (student) (989 Points)
Replied 08 March 2016

CST rate is lower than VAT. C Form acts as a declaration, certified by the respective state VAT authority that the transaction for which the particular C Form is issued is indeed an inter state sale liable to CST and not VAT. From an audit perspective, along with C Form, one also needs to verify the lorry receipt to check the destination of the consignee/buyer to ensure that it is an inter state sale.

vipin patole (Self Employed) (72 Points)
Replied 08 March 2016

C-form is given by buyer to seller in the interstate sales. Buyer from one state issue C-form to seller of another state to avail the benefit of 2% rate.

If buyer doesn't provide such c-form then seller will charge sales tax at local rates of his state.

Bikash (Sr. exe) (5 Points)
Replied 08 March 2016

"C" Form is a important Declaration to be issued to the inter state supllier by a registered dealer against the inter state purchases during one quarter.

A dealer registered under CST act can apply for C forms by furnishing the details of the supplier,, bill detail, transit detail, road permit detail.. in a proper format issued by the sales tax dept of every state

And the same is to be shown by buyer and seller both in the monthly return of turnover.

The supplier has to obtain C forms from each of the interstate dealers, one C form for each quarter

By using C form the CST liability of the buyer turns 2%, whereas if the supplier fails to produce the C forms obtained from the buyers .. before the Sales tax department, the supplier have to deposit the sales tax @ local tax.

Sometimes the buyer fails to provide c form to the supplier, thats is why the supplier keeps a sum of amount , equivlnt to CST without C form, and same is adjusted when the buyer provides tge c forms to the supplier

Kamal vashist (Accountant) (183 Points)
Replied 09 March 2016

Only a registered dealer can issue the form C. By using form C buyer shall be liable to pay 2% on the Turnover. If buyer fails to provide form C then he shall be liably to pay 2% CST or the VAT rate ( in the area/State) which shall be the Highest.