Presentation On C Form

Sale against form C.

1. C FORM
C FORM

2. 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

3. ‘ ’
DECLARATIONIN 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’

4. ‘C’FORM 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.

5. 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.

6. 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.

7. 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.

8. 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

9. 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.