Interstate sales

Save Share

This query is : Resolved

karthikitha (Querist)

31 December 2013 Dear sir
explain about the form c and how to apply it and what is usage if not applaying what is the benifit we are lost

Nikhil Kaushik

Nikhil Kaushik (Expert)

01 January 2014 Form C is security printed form and is issued by the State Sales Tax / VAT / Commercial Tax Department to a registered dealer who makes inter-state purchase of goods mentioned in his registration certificate. This form is divided in three portions marked Original, Duplicate and Counter Foil. Purchasing dealer, after making relevant entries and after putting his signatures issues portions marked Original and Duplicate to the selling dealer of the goods, the details of which have been given on the form.
The selling dealer presents Original Copy before its assessing authority for claiming exemption from or reduction in rate of tax, as the law may provide. Irrespective of rate of tax applicable to sale of certain goods within a State, where such rate of tax on sale of such goods within the State is higher than 2%, the purchasing dealer, making inter-state purchase, can, on the basis of Form C, purchase such goods after paying tax to the seller only @2%.

Single Form C can cover transactions of sales made in between same two dealers during the period of one quarter of a financial year.

In absence of Form-C, purchasing dealer would have been liable for payment of tax at the same rate which is applicable to sale of such goods within the State of selling dealer.

karthikitha

karthikitha (Querist)

02 January 2014 Thanq so much sir....................................................

Nikhil Kaushik

Nikhil Kaushik (Expert)

02 January 2014 you are welcome friend.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now