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Cst query

VAT (Legacy) 592 views 4 replies

Dear all,

we have purchase fabrics from M/S pratik enterprises. vendor has not charges cst on that as fabric is exempt. but than also vendor has ask for "c form" though material is exempt.

is this valid ? shall we issued " c form " or any other form is there.

Thanks in advance

sachin more

 

Replies (4)

C form can not /need not be issued for non-taxable sale.Even in sales where tax liability is less than 2%(may be 1%,like gold,jewejjery etc) a C form should not be issued,because it amounts to misuse of C forms.......mjk  

Dear Sir,

If only the product is taxable but you sell to a registered buyer who's SEZ (Form-I) or for Export purpose(Form-H) then buyer can claim exemption from paying tax or If local Tax is 5% or 14.5% and sells to interstate registered buyer then it can be sale CST-2% against Form-C and but when the goods itself is exempted catergory no need to issue the Form-C just mention in the Sale Invoice the goods is exempted under sec? - Tax Nil.

  You are correct.In the invoice it may or may not be mentioned about exemption.Issue of an invoice is enough.On sale of non-taxable goods C form should not be insisted......mjk

vendor is registared dealer in gujrat and he having CST reg, no. on that basis vendor is telling they neee c form for record purpose. is this valid ?


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