C form - urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 Dear All,

What should be the value of the goods to be given in C Form in case of Transit sale by the ultimate buyer to the first buyer???

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 Generally C form would be given only when the sale is inter state sale. In C form you have to so the gross value of the transaction. C form should be given on quarterly basis.

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 The sale is a CST Sale only and it is Transit Sale.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 Even if it is a transit sale the value would be the same.
Check the Invoice value that is billed by the first buyer?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 Actually first buyer is claiming the reimbursement of CST paid by him to the seller. As the transit sale is exempt he is not charging any CST on his value. For Example when he purchased from the seller at Rs. 500 & selling the product to the ultimate buyer at Rs.1000 he is claiming the reimbursement of CST on Rs.500 only. In that case if ultimate buyer issues C Form on First buyer's value what will be the supporting document the ultimate buyer have to substantiate the value given in the C Form before ST authorities??

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 Tax Invoice is enough.

But ur Query is still not clear.. Can you eloborate with other example??

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 For example lets say A is the seller, B is the first buyer, C is the ultimate buyer. A has raised an invoice of Rs.500 on B with CST and B raised an invoice of Rs.1000 on C with out CST as it is a Transit sale. But with another supplementary invoice B claims the CST amount paid to A from C.

So ultimately C has paid CST on Rs.500 only. In that case can C give C-form for Rs.1000 to B. If C can issue C-form for Rs.1000 what will be the supporting document for him??

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 Whether both B and C are residing in the same state?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 No. They are from different states.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 In the Invoice whether he has claimed VAT/CST?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 No. for CST he raised a supplementary invoice on ultimate buyer

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 Whether ultimate buyer is the trader/Manufacturer or end consumer?

If he is a end consumer he cannot give C form.

If he is trader/Manufacturer then the suplementory invoice is enough to issue C form.

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 Ultimate buyer is the end consumer

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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29 September 2011 End user cannot give C Form.

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