Page 217 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes Form 'c' is a declaration given by the buyer to seller declaring therein details (bill no, date,
amount, commodity etc.) Of purchases made. The seller present it to the local sales tax/vat
authorities telling that he sold goods on exempted or on less rate of Central Sales Tax.
Actually and in reality there is no exemption against it though it seems. When a buyer purchases
it at less rate of vat or exempted then he is selling these commodities at the rate of his cost plus
profit so the value go up and he charges vat on this increased value and in this process govt. Ends
in getting more tax.

In the case of inter state trade or commerce, registered dealer can get goods at concessional rate
of CST, if he produces a declaration in form c to the selling dealer.
The registered purchasing dealer can get blank form c from the sales tax authorities of the state
in which he is Actually registered.

Contents of Form ‘c’

form c contains particulars like name of issuing state, date of issue, name of purchasing dealer,
to whom form c is issued, his r.c.no., date from which r.c is valid, name and address of the seller
with name of the state, details of the goods ordered and obtained. It bears seal of the sales tax
authority issuing the form.

Form c is issued by the purchasing dealer to the selling dealer who shall submit to the sales tax
assessing authority.
Earlier, one c form was used for all transductions during a financial year, but now, it is issued
quarterly since the imposition of vat.
In the case of inter state trade or commerce, registered dealer can get goods at concessional rate
of CST, if he produces a declaration in form c to the selling dealer.
The registered purchasing dealer can get blank form c from the sales tax authorities of the state
in which he is Actually registered.

Form 'c' is a declaration given by the buyer to seller declaring therein details (bill no, date,
amount, commodity etc.) Of purchases made. The seller present it to the local sales tax/vat
authorities telling that he sold goods on exempted or on less rate of Central Sales Tax.
Actually and in reality there is no exemption against it though it seems. When a buyer purchases
it at less rate of vat or exempted then he is selling these commodities at the rate of his cost plus
profit so the value go up and he charges vat on this increased value and in this process govt. Ends
in getting more tax.

Declarations in e-i and e-ii Form

As per section 6(2) of CST Act, first inter state sale is taxable. Subsequent sale during movement
of goods by transfer of documents is exempt from tax, if the subsequent sale is to government or
a registered dealer. This is subject to condition that such subsequent seller obtains declaration
(a) from the selling dealer i.e. From registered dealer from whom goods were purchased. (b)
from purchaser a declaration in c form or declaration in d form. The selling dealer has to make
declaration in e-i form if it is a first sale and in e-ii form if it is a subsequent sale. One example
will clarify the requirements. Assume that despatches goods from karnataka to orissa and raises
invoice on x in madhya pradesh, w charges 4% CST and pays the same in karnataka. During
movement of goods, x sells goods to y in west bengal and y ultimately sells goods to z in orissa.
Z takes delivery of goods and the 'movement of goods' comes to end. Sale from x to y and y to

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