Concept of C form

While making Local Sales,

We charge the same rate for everyone (whether registered or unregistered)

 Rates are given in Schedules of Vat Act

Example :-

However  for Central Sales

If buyer is Registered and gives C Form ,we charge max 2% cst

If buyer is Unregistered or does not give C Form ,we charge CST at local Vat rate

• It is a form given by buyer to seller in case of Interstate Sales
• It can be given by Registered buyers only
• It is given Quarterly party vise.
• One C form for all purchases from one party in one quarter
• If C form given, maximum 2%charged
• If not given, then CST Charged at full local vat rate of Selling Dealer
• Concession regarding CST is provided as there is no input of CST like VAT

Since tax charged on purchase on 5%, Rate of tax on goods is 5%

We will charge 5% Vat on local Sales to Registerd dealer and unregisterd dealer

However on Central Sales, 

If C Form given we will Charge 2% CST 

IF no C form we will charge 5 % CST

Purchase 5% Local Dr   200000

      Input Vat 5%  10000

      To A Ltd  210000

P Ltd Dr  94500

   To Sales 5% Local   90000

   To Output Vat 5%  4500

Q Ltd Dr  44100

   To Sales 5% Local  42000

   To Output Vat 5% 2100

R Ltd Dr   122400

   To Sales 2%  Central C form  120000

   To Output CST 2%      2400

S Ltd Dr   42000

    To Sales 5% central  40000

    To Output CST 5%     2000