Sale tax
deepak
(Querist) 02 December 2011
This query is : Resolved
what is form C in sale tax.what is the used of Form C.If their is a any limit to issued Form C then what are the limit
Raj Kumar Makkad
(Expert) 02 December 2011
Sale with C-form rate of CST or Vat rate for that good of seller's state, which ever is less will be applicable .In case of sale without form C ,Vat rate of seller's state is applicable.
Read more: CST RATE WITHOUT C FORM D FORM INPUT TAX CREDIT IN INTER STATE SALE | SIMPLE TAX INDIA-ITR FORM -TDS RATE 11-12 http://www.simpletaxindia.net/2009/03/cst-rate-without-c-form-d-form-input.html#ixzz1fNfuGw5h
Shonee Kapoor
(Expert) 02 December 2011
It is used to reduce the liability of input tax.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
V R SHROFF
(Expert) 02 December 2011
It is to avoid double tax, You get rebate, while calculating tax liability.
Usually raw material processed, and finished product is sold., it reduce the amt already paid on raw, packaging materials.
I think SK Shah, or Raj Saab may be able to guide you in details.
prabhakar singh
(Expert) 02 December 2011
C Form is a Form issued by the sales tax department to the registered sales tax payer.
If he buys any good from another registered sales tax payer and issues a c form to him.
Then that other sales tax payer will not charge sales tax from him and sales tax will be collected and deposited by the c form issuer and deposited in the treasury of the govt.
The other sales payer will deposit the c form to the govt. treasury. It means the issuer of the c form undertakes to pay the sales tax.
The limit to deposit it is the time of assessment.
R.Ramachandran
(Expert) 02 December 2011
Dear Deepak,
Sales can take place within a State, or from one State to another. If on account of sale, the movement of goods takes place from one State to another, then such a sale is called Inter-State Sales.
Sales within a State (intra-State) attracts value Added Tax (earlier it was called sales tax).
Sales from one state to Another (Inter-State Sales) attracts Central Sales Tax.
If the buying registered Dealer furnishes Form-C, then the selling Dealer will be charging Central Sales Tax at concessional rate. Currently the applicable CST at concessional rate is 2%. (Earlier it was 4%). There is a proposal to completely eliminate this tax gradually.
In case the Purchasing Dealer does not furnish Form-C to the selling dealer, then the Selling Dealer will charge Central Sales Tax at the normal VAT rate; and concessional rate of CST will not be extended.
Having charged the CST in the invoice, it is the responsibility of the selling dealer to deposit the Central Sales Tax with the Sales Tax Department. The buyer will only pay the invoice price plus the CST charged on the invoice to the seller. The buyer will not directly pay the Tax to the Government.
M/s. Y-not legal services
(Expert) 02 December 2011
