C FORM TRANSACTION
This query is : Resolved
27 May 2009
Registered Dealer (Buyer) in Assam wants the seller to deliver the goods to buyer's depot/branch in Meghalaya. Can he issue 'C' form Assam ! In case, yes, if anyone would quote related section / rule under CST Act . Thanks in advance.
28 May 2009
No, he can't, becoz sales tax / CST on laible on movement of goods i.e. dispatch and delivery...
28 May 2009
Dear Mr. Sanjeev,
UR reply is not satisfactory. Please go through explanation under rule 12(6) of CST Rules, 1957. There are exceptional circumstances.
UR reply is not satisfactory. Please go through explanation under rule 12(6) of CST Rules, 1957. There are exceptional circumstances.
18 July 2024
Yes, a registered dealer (buyer) in Assam can issue a 'C' form for goods delivered to their depot/branch in Meghalaya, provided certain conditions are met. Here’s a detailed explanation:
### Conditions for Issuing 'C' Form:
1. **Goods Movement**: The goods must move from Assam (where the seller is located) to Meghalaya (where the buyer's depot/branch is located).
2. **Interstate Transaction**: The transaction should be an interstate sale, i.e., sale of goods from one state (Assam) to another state (Meghalaya).
3. **Form 'C' Usage**: Form 'C' under the CST Act is used to obtain goods at a concessional rate of Central Sales Tax (CST). The buyer in Meghalaya can issue Form 'C' to the seller in Assam to avail of this concessional rate.
4. **Registered Dealers**: Both the buyer (in Meghalaya) and the seller (in Assam) must be registered under the CST Act.
### Relevant Section/Rules:
Under the Central Sales Tax Act, 1956, the issuance of 'C' forms for concessional rate of CST is governed by Section 8(1) and Rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957.
- **Section 8(1)**: This section specifies the conditions under which a registered dealer can purchase goods at a concessional rate of CST when goods are sold for the purpose of resale or use in manufacturing or processing of goods.
- **Rule 12 of CST Rules**: This rule provides the procedure for issuing and obtaining 'C' forms for interstate transactions. It outlines the format of Form 'C' and the conditions under which it can be issued.
### Procedure to Issue 'C' Form:
1. **Request**: The buyer (registered dealer in Meghalaya) should request the seller (registered dealer in Assam) to issue Form 'C' for the goods being purchased.
2. **Invoice**: The seller issues an invoice indicating interstate sale and charges CST at the concessional rate (against Form 'C').
3. **Form 'C'**: The buyer prepares and issues Form 'C' to the seller, certifying that the goods are being purchased for resale, use in manufacturing, or processing of goods.
4. **Submission**: The seller submits Form 'C' along with their CST return to their assessing authority (Sales Tax Department in Assam).
5. **Verification**: The Sales Tax Department may verify the details and authenticity of Form 'C'.
6. **Concessional Rate**: The seller can then charge CST at the concessional rate mentioned in Form 'C'.
### Conclusion:
Yes, the buyer in Assam can issue Form 'C' for goods delivered to their depot/branch in Meghalaya, provided it meets the conditions outlined under the CST Act. It ensures that the buyer can avail of the concessional rate of CST for interstate transactions. It's advisable to adhere strictly to the procedures and rules specified under the CST Act and consult with a tax consultant or legal expert for specific advice tailored to your situation.
### Conditions for Issuing 'C' Form:
1. **Goods Movement**: The goods must move from Assam (where the seller is located) to Meghalaya (where the buyer's depot/branch is located).
2. **Interstate Transaction**: The transaction should be an interstate sale, i.e., sale of goods from one state (Assam) to another state (Meghalaya).
3. **Form 'C' Usage**: Form 'C' under the CST Act is used to obtain goods at a concessional rate of Central Sales Tax (CST). The buyer in Meghalaya can issue Form 'C' to the seller in Assam to avail of this concessional rate.
4. **Registered Dealers**: Both the buyer (in Meghalaya) and the seller (in Assam) must be registered under the CST Act.
### Relevant Section/Rules:
Under the Central Sales Tax Act, 1956, the issuance of 'C' forms for concessional rate of CST is governed by Section 8(1) and Rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957.
- **Section 8(1)**: This section specifies the conditions under which a registered dealer can purchase goods at a concessional rate of CST when goods are sold for the purpose of resale or use in manufacturing or processing of goods.
- **Rule 12 of CST Rules**: This rule provides the procedure for issuing and obtaining 'C' forms for interstate transactions. It outlines the format of Form 'C' and the conditions under which it can be issued.
### Procedure to Issue 'C' Form:
1. **Request**: The buyer (registered dealer in Meghalaya) should request the seller (registered dealer in Assam) to issue Form 'C' for the goods being purchased.
2. **Invoice**: The seller issues an invoice indicating interstate sale and charges CST at the concessional rate (against Form 'C').
3. **Form 'C'**: The buyer prepares and issues Form 'C' to the seller, certifying that the goods are being purchased for resale, use in manufacturing, or processing of goods.
4. **Submission**: The seller submits Form 'C' along with their CST return to their assessing authority (Sales Tax Department in Assam).
5. **Verification**: The Sales Tax Department may verify the details and authenticity of Form 'C'.
6. **Concessional Rate**: The seller can then charge CST at the concessional rate mentioned in Form 'C'.
### Conclusion:
Yes, the buyer in Assam can issue Form 'C' for goods delivered to their depot/branch in Meghalaya, provided it meets the conditions outlined under the CST Act. It ensures that the buyer can avail of the concessional rate of CST for interstate transactions. It's advisable to adhere strictly to the procedures and rules specified under the CST Act and consult with a tax consultant or legal expert for specific advice tailored to your situation.
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