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What is the purpose of issued c form?

Savad (Audit Assistant) (46 Points)

07 June 2013

When a party issued a c form to the supplier for their interstate sales, 1) the supplier need to submited c form in sales tax received from party? 2) if no what should do?

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8 Replies

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 10 June 2013

Central Sales Tax allows the registered dealer to charge/collect lower rates (say 2%) in the bill if the same is sold to another registered dealer in another state against C Form. The c form is to be collected from the buyer for every 3months and has to be deposited within next quarter. If having received the c form and not deposited to the department will lead to levy differential CST.

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B.N.Dharmendra (Senior Manager Indirect Taxation) (136 Points)
Replied 10 June 2013

As per CST Act Form-C is provided by the ST Department to encourge the Interstate business by providing the Tax concession. If a registered company Mfr. Products and the those products should be included in the CST Certificate and its Rate of Tax in the State may be 5% or 14.5%, then he can sell the products to interstate Registered Dealers at 2% against Form-C. If Seller fails to collect the Form-C then he have to pay the difference tax and collect it from the Buyer or if u collected the Form-C and if u dont submit to ST Dept. you have to pay the difference Tax, its going to be your cost. There is no penalty for delayed submission at tthe time of Assessment.

Dharmendra.

mohan (acconts) (21 Points)
Replied 06 February 2014

c- forms only for export actives like purchase&sales its right.

B.N.Dharmendra (Senior Manager Indirect Taxation) (136 Points)
Replied 06 February 2014

Form-C is only to purchase material at concession rate by any registered dealer ie.at CST-2% against the Tax rate of 14.5% or 5% depends on the product. For Export purpose its Form-H.

Ramakrishna (Accountant) (25 Points)
Replied 01 February 2017

In case C form is not submitted by the buyer or C form not generated at all by the buyer what to be done

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Ramakrishna (Accountant) (25 Points)
Replied 01 February 2017

In case C form is not submitted by the buyer or C form not generated at all by the buyer what to be done

vinod kumar (Asst Tax Manager) (34 Points)
Replied 27 February 2017

I need clarification on the case where the seller issued goods of qty 100units for an interstate sales, but the buyer receive goods of qty 97 units and he paid for 97 units only.

But the issue is, buyer issued C Forms for 97 units only. Now the department demanding vat on remaining 3 units ?

Whether the contention of department is valid or not ?

Kindly, clear my query as soon as possible.

Veena Gopal (2 Points)
Replied 15 April 2017

i have a question. Is c-form used only in india or it is used in other countries as well? for example i am a manufacturer and i sell goods in india and other countries as well. within india i have to use c-form for sales tax concession. what if my buyers abroad need concession on the tax say export tax. is there any c-form involved?