HOME / ARTICLES / VAT / C FORM AND ITS IMPLICATIONS
Arun J ain posted on 25 September 2014 What i s C Form? And what are its impli cations in current scenario?
Provision of C Forms is in Central Sales Tax Act,1956. As the name suggest it is to be controlled by Central Government as all revenue goes to Central Govt. But in reality it is controlled by individual states and creating a lot of problem.
What is C Forms and when it i s to be issue?
When a registered dealer purchase goods from outside of his state, he gets rebate of specific percentage of sales tax on the ground that it will declare this purchase to his state department and issue the C Form against those invoice.
For Eg. If ABC Pvt. Ltd. based in Gurgaon ( Harayana) is registered with Sales Tax Department of Haryana make a purchase of Machine Tools from a Delhi Registered Dealer J aibros Tools for the value of Rs.100,000.
Machine Tools are traded at 5% VAT in Delhi hence central sales tax would be 5% but by virtue of Central Sales Tax Act, 1956 ABC Pvt. Ltd. Get the rebate of 3% of Sales tax portion and pay only 2% along with promise to issue forms of 3% Value to J aibros Tools.
So J aibros Tools issued invoice of Rs.1,00,000 (Basic value) +Rs.2000 (CST) and required 3% of C From from ABC Pvt. Ltd.
In the same example above J aibros Tools is also making purchase under CST Act ,1956 and promising to issue C Form.
Now Come to the point,
Both ABC Pvt. Ltd. And J aibros Tools are required to furnish the details of Purchase under the act Central Sales Tax Act, 1956 in their quarterly return of Sales Tax and Sales Tax Department will provide the C from to dealer so that dealer can submit it to its creditors.
Now J aibros Tools filed its return properly and asked for C forms from the Sales Tax Department to issue to its creditor but J aibros Tools denied for C Forms on the ground that they have not submitted its C forms against the rebated sales tax sales they made to ABC Pvt. Ltd.
When they approach ABC Pvt. Ltd. They said they are facing same problem so they can not provide the C forms to J aibros Tools, it conclude that everybody has to provide C Forms to each other but unable to get from sales tax department on the ground they have not submitted forms.
How govt. Can Resolve i t?
Every dealer who is making declaration of sales under CST Act should be able to get the C Form no matter wheather it submitted its C Form and it would definitely enable him to get his C Form because every issuer will have a receiver. Submit Articles Browse by Category Recent Comments Popular Articles
How to make VLookup Foolproof IPCC Exam Oriented tips and Tricks for ITSM Subject CA, CA and CMAs wait for the right job opportunity Who says that there are no jobs for company secretaries Thank User Thank User Send PM Send PM GO CCI ONLINE COACHING NEWS EXPERTS ARTICLES FILES FORUM J OBS FEED E-MAIL EVENTS STUDENTS J UDICIARY MORE C Form and its implications http://www.caclubindia.com/articles/c-form-and-its-implications-21874... 1 of 3 26/09/2014 9:39 AM Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com) Published in VAT Source : Own Work Views : 1598 Add New Comment Hetvi Sheth 25 September 2014 Though every dealer should be able to get the C form from the issuer, it is a practical difficulty because of which the seller has to face consequences at time of sales tax assessments. FDI and its Possible Consequences on Defence Compliance Part-2: Filing of Form MBP 1: Interest of directors Life is a fun Ride, its not a race - its Lifunride Intimation to ROC for Auditor appointment in Form ADT.1 Proposed Section 35F Implications & Queries Registers can be maintained in electronic form under CA 2013 Reporting in 3CD Form (Tax Audit) Law regarding filing of form MGT.14 under Companies Act, 2013 Section 186 of the companies Act,2013 and its comparison with the predecessor provision Section 372A Income Tax implications on conversion of a Company into LLP New Land Acquisition Act - Is fair to Entrepreneurs? C Form and its implications Holding Period of flat shall be calculated back from date of allotment and payment of first installment A Brief synopsis on Special Economic Zones (SEZ) Service tax refund not shown as receivable in Balance Sheet Bureaucracy in India - A Real Hurdle for Development of Country CA Student - A Pure Potential Entrepreneurs: The biggest unrevealed threat! Impact on Employees of Enhancement of Wage ceiling from Rs. 6500/- to Rs. 15000/- Income Tax implications on conversion of a Company into LLP Automated Prepaid Expenses J V in Excel 3 Bold Ways To End An Interview Industrial Training, a comparison with working in a CA firm CSR - Income Tax Decoding Reverse/Backward VLOOKUP - Advance Excel function Changes in PF (Provident fund) Limit enhanced 6500 to 15000 Subscribe to Articles Feed SUBMIT QUERY Income Tax Audit Students Accounts Custom VAT Career Service Tax Corporate Law Info Technology Excise Shares & Stock Exams LAW Professional Resource Union Budget Others Taxpayers Other Articles by - Arun J ain Submit View other articles from this category C Form and its implications http://www.caclubindia.com/articles/c-form-and-its-implications-21874... 2 of 3 26/09/2014 9:39 AM Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com) 2014 CAclubindia.com. Let us grow stronger by mutual exchange of knowledge. SUBSCRIBE About We are Hiring Advertise Terms of Use Disclaimer Privacy Policy Contact Us
C Form and its implications http://www.caclubindia.com/articles/c-form-and-its-implications-21874... 3 of 3 26/09/2014 9:39 AM Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)