What is C Form for Sales Tax, Form C Uses & Collection Process

Notes on Form C meaning, Definition & Uses under CST Sales with collection Procedure within Time Limit in India in word / .doc Format


1) FORM – C is required to be submitted by the seller for any inter state sale transactions or invoices raised against a particular registered dealer. 

2) One FORM – C can accommodate the transactions made by the dealer during one quarter i.e April-June, July-Sept, Oct-Dec & Jan-March of the financial year.

3) The Government organizations, that are registered with sales tax authority & which were submitting declaration on Form –D prior to 01/04/07, are also required to submit FORM – C. 

4) FORM-C is to be furnished to the sale tax department within 3 months after the end of the quarter to which the FORM relates. This amendment has been made with effect from 01.10.2005. Prior to this amendment the FORM could be furnished before the sale tax officer upto the time of assessment.

5) If the necessary FORM – C is not submitted, The Sale Tax Department is entitled to consider this transaction as inter state sale made to an unregistered dealer & can impose Central Sales Tax @ 10% or VAT rate of that state (Net of Tax already paid in invoice), whichever is higher. 

6) For Non Submission of FORM – C Sales Tax Authority may levies penalty upto 2 times plus interest @ 24% of the differential amount of tax between the rate applicable in respective state for sale to unregistered dealer & the Tax paid.

Procedure for Collection of FORM – C

1) Necessary information should be given to the Dealer just after completion of the quarter by the concerned branches under which that dealer is operating.

2) If the FORM – C is not received after Expiry of 1 month from the end of a Quarter, a letter of reminder needs to be sent to the concerned dealer to expedite the process of issuing of FORM – C. Branch should also follow up with the party for the same regularly.

3) Even if the FORM – C is not collected after the expiry of 2 months from the end of the Quarter, a Legal / Tax Recovery Notice (with penalty & Interest) should be sent to the party & corresponding Debit Note should be raised in the system. No laxity in this regard shall be permitted. Collection against these Debit Notes will be the sole responsibility of the branch & should be collected within a month.

4) Also the Copies of the reminders & legal notice should be kept in the files for future reference.

Download More Information on Form C in Word


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