Submission of C Forms on Tax Free Exempted Goods
Ashish Vishnoi
(Querist) 09 August 2010
This query is : Resolved
We are a registered dealer dealing in Tax Free Exempted Goods. Is it mandatory to submit C form for Inter State Sale at the time of Assessment? Please provide me any judgement regarding above case.
Thanks.
Ashish Vishnoi.
AMIT BAJAJ ADVOCATE
(Expert) 10 August 2010
C forms are required to be submit for availing concessional rate of CST i.e @ 2% below the rate applicable in the relavant state on the interstate sales.
For tax free exempted goods there is no need to submit any C form, nor any C form is required in such case.
sanjeev kumar goel
(Expert) 11 August 2010
dear ashish vishnoi there is no need to get sales tax registration if you are dealing in tax free exempted goods. anyhow if you have taken registration then there is no need to submit any type of form and not only c form in any type of transaction that is either local or central sale. c form is only to meant to get concessional rate of tax ( at present @ 2% ) in interstate transactions but you are already dealing i tax free exempted goods so you don't have to pay any tax in interstate transaction.
Ashish Vishnoi
(Querist) 11 August 2010
Dear sir,
Thanks for your advise but I would like to mention that my product is not a scheduled tax free goods. Our unit falls in a Tax Free Zone. Thats why it is an Exempted Tax Free Goods. In that case Is it mandatory to submit C form for Inter State Sale at the time of Assessment? If Yes than please also provide any judgement regarding that.
Thanks.
Ashish Vishnoi.
sanjeev kumar goel
(Expert) 15 August 2010
Mr. Vishnoi, as your unit is situated in Tax Free Zone hence your purchase and sales are exempted from payment of tax. As per law you have to submit Form C for the interstate transactions but if somehow you could not submit Form C then it does not effect your transactions as your sales are exempted.
Ashish Vishnoi
(Querist) 16 August 2010
Thanks Sir. But Please provide me any case judgement because my assessing authority is not agreed with this version.
