About c form

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Vakil Singh (Querist)

02 January 2016 Dear Sir

we are ask the question

I have sales the material out of state against c form but i prpare the bill against c form but i add the freight in bill i can't understand we have which amount c form received total bill value or without freight bill amount as a

sales Rs. 100000

agains c form 2000

freight 8000
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Total 110000
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Total bill value including freight 110000, i can't understand which amount ask the party of c form with freight amount ask c form or without freight ask c form, any body tell me. provide the solution. if ask the c form with freight why and which rule if without freight ask the c form why and which rules.

CA Shyam Agarwal

CA Shyam Agarwal (Expert)

02 January 2016 cont. with your example real CST sale is rs. 100000/- and Rs. 8000/- is Freight (it will not include in amount of sale) while preparing P&L account. You will receive C form of Rs. 100000/-. Although Freight will be mentioned in invoice but it will come under the head of direct expenses not under sales. In sales tax return you also mention the CST sale of Rs. 1 Lac.

CA Shashank Jain

CA Shashank Jain (Expert)

02 January 2016 C Form is issued to sell goods out of the state at lower rate of tax. The value of the goods sold by you here is Rs. 1,00,000/- and therefore you have charged 2% CST on that amount. That is why you will be asking for C Form for the Goods being valued as Rs.1,00,000/-.

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