The use of ‘C’ form is very important in case of inter state sales. It means any business firm sells the taxable goods to other state or purchases taxable goods from other states then it has to receive or issue the ‘C’ form as the case may be, for concessional rate of central sales tax. In this respect, we would like to clarify the following terms:-
Q. What is ‘C’ form?
Ans. C form is a certificate issued by the registered purchaser of the goods of any state to the registered seller of other state. In ‘C’ forms the value of purchases is declared by the purchaser. The lesser amount of Central Sales Tax is charged on central sale if the purchaser issues the ‘C’ form. Now a days generally 2% sales tax is charged on central sale against ‘C Form’.
Q. What are the contents in ‘C’ Form?
Ans. Name, address and registration number of the supplier and the purchaser. Details of material purchased like bill number, bill date and amount of goods, Serial number of ‘C’ Form, State of Issue etc.
Q. Who issues the ‘C’ Forms?
Ans. The Sales Tax Authority issues the ‘C’ forms to the buyer of goods who further fills up all the details of goods and gives to the seller.
Q. When the ‘C’ form must be given by the purchaser to the supplier of goods?
Ans. Every quarterly. One ‘C’ form should be issued by the purchaser after end of the quarter against all purchases of goods during a quarter.
Q. How many quarters are there in a year for sales tax purpose?
Ans. There are four quarters for sale tax purpose i.e. April to June, July to September, October to December and January to March.
Q. Is there any limit of amount of ‘C’ form.
Ans. There may be any amount of a single bill during a quarter and for various bills the limit is one crore.
Q. What are the consequences if the ‘C’ form is not issued by the purchase?
Ans. If the ‘C’ form is not issued by the purchaser then the supplier has to deposit all the sales tax at normal rates. No concession shall be given in this case. More over, the supplier has to pay the interest and penalty also. However, legally, he can recover the same amount from the customer.
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