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Concessional Rate of Tax in case of C Form

If C Form not given, CST charged at local vat rate

If C Form given, CST Charged at

Local Vat rate

Or

2%

Whichever is less

 

It is a Form given by buyer to seller in case of interstate sales

If buyer and seller are registered

 

Conditions to be fulfilled for concessional rate of CST: A dealer is liable to pay CST at the concessional rate provided the following conditions are satisfied:-

  • Sale is of eligible goods:

 

Goods described in sub-section (3)* are the goods eligible for concessional rate of CST (refer Note below).

Eligible goods are

  • Goods resold
  • Goods used in manufacturing
  • Goods used in telecommunications
  • Goods used in mining
  • Goods used in generation or distribution of electricity
  • Containers used for packing goods used for sale
  • Containers or packing material of all above
  • Sale is made to a registered dealer.
  • Form C to be furnished by the purchasing dealer:

 

Hence,C Form cannot be used for purchase of goods for office use

  1. Indirect Tax
  2. CST
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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