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Purchase against c form

Rahul jain (LEARNING & TEACHING) (435 Points)

28 March 2014

can any body plz xplain me the full detail about purchase aginst C form.......????

and in which conditions the tax amount paid can be claimed under C form.....????

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3 Replies

Vijeta Nathani (Student ) (56 Points)
Replied 28 March 2014

Dear Rahul,

C form can be used where purchaser and seller both are registered dealers. And it can be used only for the purchases of the items as are mentioned in the registraton certificate of purchasing dealer. The goods so purchased can be for Resale or for use in manufacturing process or for packing of such goods.

For example, Mr. A is registered dealer in Gujarat and purchases goods from Mr. B who is in Maharshtra. Lets say for example, that the goods he is purchasing are under category of 4%+1% VAT in Maharashtra. As he will not get input tax credit for the CST paid, he can go for C form. He will Submit the C form to Seller and Seller will sell the goods at 2% CST only. Later on, This C form will be furnished by seller to Maharashtra VAT Department to justify the 2% instead of 5%.

A single Declaration can be issued for one or more transactions done with SIMILAR party for a QUARTER. Again if the delivery of goods is spread between two different quarters or financial years, it shall be necessary to furnish different forms.

The declaration in Form C shall be furnished to the prescribed Authority within 3 months after the end of the period to which the declaration relates.