CST Sales Tax Guide on C Form
Usage, Submission Procedure & Penalty for Non – Submission of Form C in
India in word / .doc Format
Timely submission of Form-C &
consequences in case of non-submission in time:-
- In order to avail concessional rate of Sales Tax on
inter-state transactions your dealers are required to provide us
declaration on Form-C. The concessional rate of Sales Tax applicable on
submission of Form-C is presently 2% (Form 01.06.2008), from 01.04.2007 to
31.05.2008 it was 3% and earlier 01.04.2007 it was 4%.
- The transactions made by the purchasing dealers from you
during one quarter i.e. April – June, July-September, October-December and
January-March of the Financial Year can be accommodated in one `C’ Form.
- On and from 01.10.2005 due to amendment in Sales Tax
Laws, the Form-C is to be furnished by us within 3 months after the end of
the quarter to which it relates, and therefore, it must be received by us
soon after the particular quarter to which it relates is over. Prior to
01.10.2005 it could be submitted upto the time to assessment.
- Therefore, for the transactions made by a dealer during
just preceding quarter necessary details should be given (invoice-wise) to
the dealer by the concerned branch/depot so that the dealer furnishes the
declaration without delay.
- For any sales made to Government organization they are
also required to submit declaration in Form-C from 01.04.2007 in place of
certificate in Form-D as was applicable earlier. Therefore, the same condition
applies to Government organization as are applicable to other dealers
furnishing declaration in Form-C.
- If necessary C-Forms are not submitted in time before
the Assessing Officer, the Assessing Officer will complete the assessment
in absence of such C-Forms by treating the Sales not so covered and by
deeming it to be made to unregistered dealers and impose the Sales Tax at
the maximum rate applicable in the State from where the goods moved, on
the differential amount of tax between the rate applicable for sales to
unregistered dealers and the tax paid.
- He can also levy penalty upto 2 times plus interest at
the rate of upto 24% of the differential amount of tax between the rate
applicable for sales to unregistered dealers and the tax paid.
- If the Form-C is not received by the branch/depot after
expiry of one month from the end of a quarter a letter of reminder is to
be sent to the concerned dealer to expedite the receipt of C-Form from
him.
- Even thereafter if C-Form is not received from the
dealers after the expiry of 2 months from the end of the quarter “Provisional
Debit Note” should be raised on the dealer covering the differential value
of concessional Sales Tax involved and if the C-Form is received by the
depot thereafter from the dealer during that quarter, the Debit Note
should be cancelled.
- In case the dealer expresses his inability to submit
the Declaration Form on the ground that he is not receiving the same from
his Sales Tax Authority, he is to give us the Xerox copies of letters
addressed by him to Sales Tax Authority and in case of failure by such
Assessing Officer to provide the Form, his approaching to higher formation
in this regard, for our consideration. However, the lapses on the part of
the dealer on account of non-submission of return by him or deposit of due
tax by him, due to which he is not provided with the forms, will be not
taken as excuse.
- The list of dealers with details of transactions
against which Declaration Forms are not received as above should be sent
to Head Office every month for their perusal and further action.
- In case of non-submission of Forms for which tax and
penalty is imposed, it is our primary liability for no fault on our side
and simply for non-submission of the Forms due to negligence /lapses in
procuring the required forms and submitting the same in time and
therefore, it will be very seriously viewed.
