Form C Importance & Submission Deadline

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:-

  1. 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%.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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. 

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

 Download More Information of Form C

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