07 February 2012
When ever a sale is happening from one state to another state,(interstate) Central Sales Tax is applicable which is normally at a higher rate than state sales tax. But in case if buyer is a registered party at central sales tax authority he can enjoy the benifit which is he can buy the goods from another state at a rebate. The rate of tax on interstate sales is governed by Central Sales tax Act and if the sale is made to a registered dealer of the another state then the rate of tax is 2% but the registered dealer (i.e. ) the purchaser have to supply C-form to the seller . The rate of tax without C-form in case of interstate trade or commerce is equal to the rate of tax applicable in the state of the seller. In fact C-form is the proof that the sales is made to a registered dealer of another state. For info: https://www.caclubindia.com/forum/what-is-c-form--31962.asp when c form misplaced form G issued by department as indemnity bond,