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WHAT IS C-FORM?


Hii...........CAN ANYONE PLEASE TELL ME EXACTLY WHAT IS THIS C-FORM AND WHERE EXACTLY IT IS APPLICABLE???? ALSO FOR VAT RETURN PURPOSES WHAT IS ITS USE???


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Accounts & Controls


Forum Moderator

Form C is issued by a reg. dealer(purchaser) to seller of
goods in case of CST so as to charge him sales tax at lesser
rate


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Accounts & Controls


Forum Moderator

and...

At the time of collecting the C-Form booklet from the dept, the C-form numbers will be noted down by dept in a register given to the companies.
C-form contains of 3 copies. One copy for the company and remaining two copies to the creditor.
You should maintain a C-form register and mention the numbers for whom you are issuing the C-form and invoice break-up details should be attached with the respective C-form.(if demanded by the dept, you should produce the invoice copies).
At the time of assessement of sales tax, you should provide the details(C-form register) to the dept.


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PRACTICING CHARTERED ACCOUNTANT

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 another state then the rate of tax is 2% but the registered delaer (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. In fact C-form is the proof that the sales is made to a registered dealer of another state.- ca sudhir Halakhandi


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thanks sir..................thanks a lot 2 both of u........

 
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tax consultant


1. The concept of C form is very simple. When Goods are moving from one state to another state, CST comes into play. Generally Goods move from one state to another state, generally they are either of Resale and/or for use in manufacturing of Goods.

2. When such goods are purchased either for resale and /or for use in manufacture, State Government  collects the tax when goods are resold or when manufacturing goods are ultimetaly sold. Thus Govt gets that tax on final selling price.

3. In such case when goods are moved from one state to another if full tax is paid by purchaser to Seller, then there will price rise, as purchaser is not entitled for SETOFF of CST paid on purchases.

4. To avoid this double taxation C Form plays importnat part. When one Registered Delar purchase goods from another registered Dealer, they can use C form , and then selling dealer will charge CST at reduced rate ( Section 8(2) of CST ACt

There is lot more things about C form, but i think u are interested in general principles.

so thats enough for the pen


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IF THE REGISTERED PUCHASER NOT SUBMIT THE "C" FORM WHAT TAX RATE WILL BE APPLICABLE

 
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glidor@gmail.com


1. C form is a Form supplied by Vat office of the Purchasing dealer having CST registration.

2. C form is used to get goods purchased from outside the state at concessional rate of Central Sales Tax.

 
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Chartered Accountant


Please suggest the consequences on non-submission of form C to tax deptt i.e. how much interest & penaly is applicable?

 
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glidor@gmail.com


in case the seller fails to obtain C forms from interstate buyers, the sale is treated @ maximum vat chargable in state, and short fall with interest is to be paid by the dealer ( seller) 


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