Tax applicable in U.T. if customer doesnt give C form

The company is situated in U. T. of India and does not charge tax to customers against C forms for inter state sales. If the customer does not give  C form, which rate will be charged in billing ?

Replies (5)

If the customer is not giving C Form then you have to charge the tax at the rates that is applicable if you had sold it in your state.

For E.g if I am selling Telephones in Karnatka the rate of VAT is 5% and cables is at Rate 14%. If i am selling it to a dealer in UP who is ready to give  C Form i will charge 2% CST if he not giving C Form then I have charge 5% on telephones and 14% on cables that i am supplying to him

 

Hope this solves your question

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I don't know why you are not charging CST wright now. As per the relevant provisions a dealer is required to charge CST as shown below:

Particulars Sale to
Registered Dealer Non Registered Dealer
Against C Form 2% of applicable VAT Rate, which ever is lower N.A.
Without C Form Applicable VAT Rate Applicable VAT Rate

 So, in case the purchases fails to furnish C form with the seller then, the sell will be deemed to have been without C form.  Accordingly, applicable VAT rate wiil be charged. Further, dealer (seller) will be liable to pay interest for the delayed payment also.

 

 

 

 

 

Agree with Mr. Praveen .  .

dear sir,

if party not pay CST & VAT,not give c-form then what will be do.......

Dear Mr. Dinesh, the liability to pay CST or VAT is of the selling dealer whether or not the actual tax is collected from the buyer.

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