C form

benefit of c form and use of c form and if c form not provided that what penalty levy

Replies (3)

I will give u an example...

If u are manufacturer in tamil nadu and sell ur products in kerala then u must get C form from ur buyer in kerala.... normally with C form the VAT rate is oly 2% but if u sell it without C form then its 12.5%.

Oly if u produce C form for ur inter state transactions u can get this benefit of 2%... if u have not produced C form then u have to pay the tax at 12.5% and all the input/output credit availed by u will get reversed.....

hope u got atleast a basic insight from this...

Form C is issued by the dealer for purchasing goods from the dealer out side the state in which he resides. As out side state sale/purchases(known as inter-state sale/purchase)  it will attract CST and not local VAT.

example.
IF Mr A Registered Dealer in Gujarat wants to purchase goods from Mr B a registered dealer in Maharashtra.Mr B who is selling the goods will charge VAT @ 5% or 12.5% (whichever rate applicable)on the goods if Mr A issues him “C” Form then Mr B should Charge him CST @ 2%.

C Form is mandatory to avail concessional rate Submission of C form is mandatory and unless C form is submitted, concessional rate of sales tax will not apply.

 

thanks

Department Cannot levey penalty on non submission of C Form. For more information please visiit www.cstonline.in

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