Monday, July 16, 2012

What is C - Form


C-Form is a certificate issued as proof of CST Purchase. This form can be obtained from sales tax dept. The seller has to obtained this form – C from the purchaser and show it to the sales tax dept to get tax exemption. In case if the purchaser does not release the Form – C the seller has to pay the Tax at the time of sales tax assessments.
Form C is issued by the dealer for purchasing goods from the dealer out side the state in which he resides the effect can be understood my looking at following example If Mr A Registered Dealer in Hyderabad (AP) wants to purchase goods from Mr B a registered dealer in Mumbai.Mr B who is selling the goods will charge VAT @ 4% or 14.5% on the goods if Mr A issues him “C” Form then Mr B should Charge him CST @ 2% so Mr A is SAving Tax.

It will be safe for the seller if he can get a D.D. for the tax amount of the goods which is sold to the purchaser. Because sometime the purchaser fail to provide the form – C to the seller due to unknown reasons, at this time this D.D. which is collected will be off much helpful to the seller.

Purpose for which Goods can be purchased under concessional rate (Ref;Sec 8(3))

  1. Goods as being intended for re-sale
  2. For use in the manufacture or processing of goods for sale,
  3. For use in telecommunication network or in mining or
  4. For use  in generation or distribution of electricity or any other form of power
  5. Container or other  materials intended for the packing of goods for sale ( i.e. primary packing materials )
  6. Container or other materials used for packing of any goods mentioned in para (i) or (iv) above  ( i.e. Secondary packing materials)

Purchase of capital goods by a contractor against c form
To Purchase a capital goods under C form, the following conditions should be satisfied by a dealer 

  • He should be Manufacturer and using the machinery for such manufacture of goods which are mentioned in his CST registration certificate and / or should give intimation to the prescribed officer within 30 days of such purchase. 

In your case the Dealer is registered with CST , if in the Work Contract, there is a VAT component is paid by the Dealer then he is eligible for purchase under C form.

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  1. We have purchased material from Tamilnad state. But our supplier raised bill CST@5% basis instead of CST@2% against form C. so shall we issue the
    C- Form or not? please reply me sir

  2. Dear Sir,

    Please confirm is there any word i.e"SALE AGAINST C-FORM".

    1. Dear Mr.Rohit Sharma,

      May be its better in Invoice mention '"SALE AGAINST C-FORM"

  3. i am purchasing a machine from pune maharashtra but i have TOT licence how can i get waybill ? kindly help me

    1. Dear Mr.Syed,

      May be TOT dealer also apply C-Form. Contact your circle office

  4. Can we get C Form in Advance

    1. Dear Sir/Madam,

      You must apply C-Form only with original Invoice Number. So you can't apply advance C-Form


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