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What is C Form?


Akanksha (CA)     27 April 2009

Akanksha
CA 
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Applicability of C Form in the VAT scenario. 

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CA. Dashrath Maheshwari (TaXpert)     27 April 2009

CA. Dashrath Maheshwari
TaXpert 
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Form C is issued by a registered dealer(purchaser) of goods to the seller of goods in case of interstate sales. When sale is made by a registered seller of one state to a registered dealer of another state, CST is chargeable 2 @ % provided the registered dealer(purchaser) has provided CST to the registered seller. In the absence of C form, CST will be leviable at the rate applicable in the seller's state.  In such a case there will be a rise in price, as a purchaser is not entitled to set off CST paid on purchases.

Thus C Form plays an important part in avoiding double taxation as well. 

 

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CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT)     27 April 2009

CA SUDHIR HALAKHANDI
PRACTICING CHARTERED ACCOUNTANT 
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The rate of tax on interstate sales is governed by Central Sales tax Act and if the sale is made to a registered dealer of another state then the rate of tax is 2% but the registered dealer (i.e. ) the purchaser have to supply C-form to the seller. The rate of tax without C-form in case of interstate trade or commerce is equal to the rate of tax applicable in the state of the seller. In fact, C-form is proof that the sales are made to a registered dealer of another state.- CA Sudhir Halakhandi

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Akanksha (CA)     28 April 2009

Akanksha
CA 
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thanks sir..................thanks a lot 2 both of u........

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R B Banwat (tax consultant)     29 April 2009

R B Banwat
tax consultant 
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1. The concept of C form is very simple. When Goods are moving from one state to another state, CST comes into play. Generally Goods move from one state to another state, generally they are either of Resale and/or for use in manufacturing of Goods.

2. When such goods are purchased either for resale and /or for use in manufacture, State Government  collects the tax when goods are resold or when manufacturing goods are ultimetaly sold. Thus Govt gets that tax on final selling price.

3. In such case when goods are moved from one state to another if full tax is paid by purchaser to Seller, then there will price rise, as purchaser is not entitled for SETOFF of CST paid on purchases.

4. To avoid this double taxation C Form plays importnat part. When one Registered Delar purchase goods from another registered Dealer, they can use C form , and then selling dealer will charge CST at reduced rate ( Section 8(2) of CST ACt

There is lot more things about C form, but i think u are interested in general principles.

so thats enough for the pen

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Yugal Kishore Mishra (Accountant)     07 January 2011

Yugal Kishore Mishra
Accountant 
 21 points

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IF THE REGISTERED PUCHASER NOT SUBMIT THE "C" FORM WHAT TAX RATE WILL BE APPLICABLE

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U S Sharma (glidor@gmail.com)     07 January 2011

U S Sharma
glidor@gmail.com 
 1739 likes  21021 points

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1. C form is a form supplied by a registered dealer (purchaser having CST registration) to a registered seller in case of an inter-state sale.

2. When C form is issued by a registered dealer, CST is chargeable at a concessional rate of 2%.

3. In the absence of C Form, CST is leviable at a rate applicable in the seller's state.

4. C Form plays an important part in avoiding double taxation.

vivek garg (Chartered Accountant)     09 February 2011

vivek garg
Chartered Accountant 
 51 points

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Please suggest the consequences on non-submission of form C to tax deptt i.e. how much interest & penaly is applicable?

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U S Sharma (glidor@gmail.com)     09 February 2011

U S Sharma
glidor@gmail.com 
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in case the seller fails to obtain C forms from interstate buyers, the sale is treated @ maximum vat chargable in state, and short fall with interest is to be paid by the dealer ( seller) 

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Sathya Sankeerth K N (Chartered Accountant)     05 May 2011

Sathya Sankeerth K N
Chartered Accountant 
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Thanks to every person who posted answer for the same..................

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