C FORM

C FORM

BRIEF OVERVIEW

DECLARATION IN C FORMTYPES OF C FORMCONTENTS OF C FORMCST RATESC FORM PREPARATIONPROCEDURE IN CASE OF LOSS OF C FORMBENEFIT OF C FORM

DECLARATION IN ‘C’ FORM

SECTION 8(4)(a)

All the manufacturer & traders can avail the facility of inter state purchase or sale of

goods at concessional rate of CST The dealer should be Registered in Central Sales Tax &

goods are covered in the registration certificate of dealer for benefit of concessional rate of CST

The purchaser has to furnish to the seller a declaration in form ‘c’

‘C’FORM IS IN TRIPLICATE

COUNTERFOILPART A

DUPLICATEPART B

ORIGINALPART C

Original Part To be furnished by the purchasing dealer to the selling dealer who shall furnish it to theassessing authority, when required by it to do so.

Duplicate Part To be furnished by the purchasing dealer to the selling dealer who shall retain it in hisrecord.

Counterfoil Part To be retained by the purchasing dealer who shall produce it before the assessingauthority, when required by it do so.

CONTENTS OF C FORM UNDER CST ACT

The Blank C Form has to be obtained by purchasing dealer from Sales Tax authority in the State in which goods are delivered, which is usually the place where purchasing dealer is registered.

The ‘C’ form contains particulars like (a) purchasing dealer’s Sales Tax registration number & its validity (b) details of goods obtained Seller’s Bill number, Bill date (c) whether goods required for resale or use in manufacture/processing or use in power generation or use in mining or use in packing (d) whether dealer is registered in the State in which goods are delivered (e) name and address of seller with name of State. The certificate has to be declared to be true to his belief and has to be signed by authorised signatory of the purchasing dealer. The form bears seal (rubber stamp) of the sales tax authority issuing the form.

CST RATES

CST has been reduced from 4% to 3% w.e.f. 1-4-2007

CST has been reduced from 3% to 2% w.e.f. 1-6-2008 (Present Rate – 2%)

It is proposed to reduce CST rate by 1% every year and to make it Nil by 1-4-2010, such reduction can be made by Central Government by issue of a notification under provision to section 8(1) of CST Act. Thus, further reduction in CST will not be automatic.

C FORM PREPARATION

C form prepare on quarterly basis w.e.f. 1-10-2005, One declaration in C form can cover all transactions in one quarter.

Before 1-10-2005 ‘C’ form prepared on yearly basis, one form per financial year was sufficient.

Procedure in case of Loss of C form

If duly completed or blank C form is lost when it was in custody of purchasing dealer or when the form was in transit to selling dealer, the purchasing dealer will have to furnish ‘Indemnity Bond’ to sales tax authority (from whom the blank forms were obtained) in prescribed ‘G’ form.

If the duly completed C form is lost after it is received by selling dealer, he has to submit indemnity bond to sales tax authority of his State.

After Submission of Indemnity bond, the purchasing dealers can issue duplicate declaration in ‘C’ form with clear declaration in Red Ink that this is a duplicate declaration being submitted. Details of earlier certificate number (which was lost) and of selling dealer has to be given

Benefit of C Form

Central Sales Tax is cost burden of buyer its increase our material cost, so purchase against ‘C’ form we can reduction of our Product Cost, because CST not adjusted against our output tax liability

If purchasing dealer for issuing C form in respect of goods for which he is not registered and which are not included in his registration certificate then penalty can be imposed on purchasing dealer for false declaration.