What is "C" Form ??
What is the advantages of issuing "C" form ??
What is the process of issuing C form ?
how the application is made for C form ??
suppose X (maharashtra) make sale to Y (gujarat). if x make local sale he need to collect 12.5 % vat. but since he is making interstate sale Y can issue C form and therefor X will charge only 2 % Cst
c form is declaration by interstate purchaser that he is dealer in other state so eligible for lower rate of vat.
this r provision as per CST Act.
@ Mohit:: yes C form need to be issued even though the rate of tax is same
Dont agree wid Vishnu
If the rate of local vat and cst is same then dont issue c form..just make a normal transaction as it would not involve any extra cost burden on purchaser.tax amt would be same whether u issue C form or not (when tax rate is same). and input benefit is not available
if tax rate is same there is no logic for c form since u r nt charging nethng less than local rate. this happens in case of gold jewellery
about procedure>>>>>you just need to make an application to the sales tax office for the issue of C form
and in case C form already issued than you have to provide the full details of already issued C form
in order to isssue the fresh C forms.( fuul details of the sales for which c forms has been issued)
I dont agree with Karan and Ankit Bhansali,
Definition of inter state movement of goods and intra state movement of goods (within state) is given by both state VAT acts and CST Act. Hence we cannot charge VAT on inter state transaction though the rate of tax is same under VAT and CST.
Other Members, please provide your views.
i agree with Pradeep S.
we would not charged vat because this money does not belong to state we would charge cst but there is no need of c form practically since rate are same
Dear Chaitali
"C" Form is a Declaration by the purchaser that he is registered under the Central Sales Tax Act and is purchasing the goods at a concessional rate for the following purposes
The present rate of CST is 2%
A "C" Form can only be issued by a Purchaser when there is inter-State movement of goods i.e. the Origin State is different from the Destination State.
What happens if the "C" Form is not issued by the purchaser ?
The selling dealer is liable to pay the differential tax (i.e. the Amount of Tax on the material as per local vat act and the amount calculated @ 2% on the value of material , (please see example for more clarity) alongwith the interest for late payment.
Example
| Sale against "C" Form | Sale without "C" Form | |||
| Value of Material | 100.00 | Value of Material | 100.00 | |
| CST @ 2% | 2.00 | CST @ 12.5% without C Form | 12.50 | |
| Total Value of Invoice | 102.00 | Total Value of Invoice | 112.50 | |
If the C Form is not received then the selling dealer is liable to Pay Rs.10.50 [Rs.12.5 - Rs.2.00) along with interest.
How to apply for "C" Form
Application for "C" Form is to be made to the VAT Authorities in the Circle where the Purchasing Dealer is registered. Presently the a consolidated "C" Form is to be issued for a particular Quarter starting from April. The Purchase should be shown in the Purchase Register. Now most of the States issue "C" Form online.
Would be glad to clarify your doubts, if any.
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