Applicability of C Form in the VAT scenario. CA. Dashrath Maheshwari F orm 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. T hus C Form plays an important part in avoiding double taxation as well. CA Sudhir Halakhandi 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 thanks sir..................thanks a lot 2 both of u........ 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 Yugal Kishore Mishra IF THE REGISTERED PUCHASER NOT SUBMIT THE "C" FORM WHAT TAX RATE WILL BE APPLICABLE 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. Please suggest the consequences on non-submission of form C to tax deptt i.e. how much interest & penaly is applicable? 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) Sathya Sankeerth K N Thanks to every person who posted answer for the same.................. Shrikant Sanjayrao Mirjapure AT THE TIME OF SELLING GOODS TO ANY GOVT. DEPARTMENT THAT TIME TAX IS NOT APLICABLE. (MEANSE RATE OF GOODS IS INCLUDING TAX) Nitin Srivastava Can I issue C Form while I am in Lumpsum tax rate of 2% (Composition) in Works Contract CA RICHA BADALIA

ANIL SULEGAI PREMANATH ... But depends upon the state too. for eg., In Karnataka you cannot issue a single C form for the whole Year. You need to apply for c form for every quarter for every dealer. And in karnataka you have to apply C form online and no blank c form is issued seperately from the VAT office. ABHINANDAN JAIN Lots of Queries regarding C form has been solved Thank u everyone Your are not logged in . Please login to post replies Click here to Login / Register Recent Topics : How do you collect documents from clients for ITR GST ITC on Construction/ Tenant Specific Renovatio GST Treatment and Reporting of Share & Mutual AGM Defective Notice IMS Rejection of Sales and Sales return Taxation of Gift - Father to Daughter TDS on Property Purchased above 50lakh Accounting Treatment in Tally for Restaurant Sales Form 146 required Rule 86(B) Applicability More recent discussions | Post Related Topics : Latest Job Openings Naveen Fintech Pvt Ltd Aditya Muley and Co Rohit KC Jain & Co RRPM & ASSOCIATES LLP Saini Pati Shah & Co LLP Dass Gupta & Associates India's largest network for finance professionals