We are dealing with pharma distribution, for purchase from andhra, they are charging cst 4%, What is the formalities to issue C form,Is it compulsory? for multiple purchase what is the procedure?In vat return where C form issued shown?
5 Replies
CA Abhash Mishra
(Chartered Accountants)
(598 Points)
Replied 19 November 2008
| Originally posted by :kalpana hegde | ||
| " | We are dealing with pharma distribution, for purchase from andhra, they are charging cst 4%, What is the formalities to issue C form,Is it compulsory? for multiple purchase what is the procedure?In vat return where C form issued shown? | " |
Now C form can be issued only in the case of deduction of sales tax @ 2%. In u case it should to be issued.
thanks
RAJU
(LEARNER)
(1089 Points)
Replied 06 December 2008
Dear Kalpana Madam,
As per CST Act, 1956, if goods are purchased for purpose of resale, use in the manufacture of goods for sale, packing of goods, you can issue Form-C declarations obtained from you assessing authority. It may please be noted that vendor is required to charge CST at 2% only, if you are issued Form-C.
It is very important to note that your CST Registration Certificate should invariably contain the list of goods which you will be buying against Form-C. In case they are not in the Certificate, then you cannot issue Form-C.
In the VAT returns, there are provision to report the interstate purchase details.
Mr. Ravichandran,
Form-C has to be issued on the total value of the invoice which inclusive of CST.
Rgds/Dharmaraju
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