C form

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POOJA BILAKHIA

POOJA BILAKHIA (Querist)
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13 September 2012 What is C Form ? When to issue and who will issue it ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 September 2012 C-Form is a certificate issued as proof of CST Purchase. This form can be obtained from sales tax dept. The seller has to obtained this form – C from the purchaser and show it to the sales tax dept to get tax exemption. In case if the purchaser does not release the Form – C the seller has to pay the Tax at the time of sales tax assessments.

Form C is issued by the dealer for purchasing goods from the dealer out side the state in which he resides the effect can be understood my looking at following example
If Mr A Registered Dealer in Hyderabad (AP) wants to purchase goods from Mr B a registered dealer in Mumbai.Mr B who is selling the goods will charge VAT @ 4% or 12.5% on the goods if Mr A issues him “C” Form then Mr B should Charge him CST @ 2% so Mr A is Saving Tax.

For more see below link---

http://blog.amitbajajadvocate.com/2010/09/some-issues-pertaining-to-c-forms-under.html

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