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C form mechanism

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)

27 November 2012

Hello friends., can anyone explain me the whole mechanism of "C" forms..

Thoeretically., i have read., but not understood properly.., so want to know from you all.., please help me out...

Who issues it or to whom or to why it is issued.., everything..

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manoj (student) (5205 Points)
Replied 27 November 2012

C form is a form for the concessional rate of CST on the inter-state sale of goods and is issued by purchasing dealer in one State to the selling dealer in another State for the inter-state sales transactions done during the period of three months i.e a quarter.

subramanya (Professional) (907 Points)
Replied 27 November 2012

Originally posted by : CA Dhiraj Ramchandani
	Hello friends., can anyone explain me the whole mechanism of "C" forms.. Thoeretically., i have read., but not understood properly.., so want to know from you all.., please help me out... Who issues it or to whom or to why it is issued.., everything..

Dear Dhiraj,

During Interstate transaction between registered dealers, statutory declaration Form C is used. Assume Party A –Delhi dealer sold goods to Party B-Haryana dealer, who in turn agrees to give Form C for the transactions occurred during the quarter. Now Party A- Delhi will raise an Invoice and charges 2% CST.

Party B-Haryana dealer has to request his Excise & Taxation depart with his Interstate purchase details and collect Form C for the transactions made against Party A –Delhi Dealer, after collecting the Form C, Party A- Delhi dealer will submit to Delhi Tax authorities along with the Interstate Sales made against Form C.

Note : In Delhi the vat rate for the goods are 12.5%, if the transaction is not against Form C, then local vat rates are applicable for CST also.

With regards,

Subramanya

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