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C FORM
BRIEF OVERVIEW
DECLARATION IN C FORM TYPES OF C FORM CONTENTS OF C FORM CST RATES C FORM PREPARATION PROCEDURE IN CASE OF LOSS OF C FORM BENEFIT 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
CFORM IS IN TRIPLICATE
COUNTERFOIL PART A
DUPLICATE PART B
ORIGINAL PART C
Original Part To be furnished by the purchasing dealer to the selling dealer who shall furnish it to the
assessing 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 his
record.
Counterfoil Part To be retained by the purchasing dealer who shall produce it before the assessing
authority, when required by it do so.
CST RATES
CST has been reduced from 4% to 3% w.e.f. 1-42007 CST has been reduced from 3% to 2% w.e.f. 1-62008 (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.
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.