C-form

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Karishma

Karishma (Querist)

12 August 2013 what is c form

Hemant Kumar

Hemant Kumar (Expert)

13 August 2013 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.

It will be safe for the seller if he can get a D.D. for the tax amount of the goods which is sold to the purchaser. Because sometime the purchaser fail to provide the form – C to the seller due to unknown reasons, at this time this D.D. which is collected will be off much helpful to the seller.

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Karishma

Karishma (Querist)

13 August 2013 what is the accounting entry for purchase of car at loan in a company and loan is taken from bank. please answer me and explain by taking an example.

Hemant Kumar

Hemant Kumar (Expert)

14 August 2013 Accounting Entries will be as:

1) Bank Ac. Dr. 500000/-
To Bank Loan Ac. 500000/-

2) Car (fixed assets) Ac. Dr. 500000/-
To Bank Ac. 500000/-

Bank A/c :- Saving or Current

Bank Loan Ac. :- (Payable termed as Liability)

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