Issue of Form C

[PANKAJ GUPTA]

Dear Sir,

Sales made on 31.03.2015 (F.Y 2014-15) from Haryana Dealer to Gujrat Dealer against Form C and material received by party on 04.04.2015 (F.Y. 2015-16).

Please confirm in which quarter, party should be issue Form C in March 15 Qtr or June 15 Qtr as per CST law.

Regards

Pankaj Gupta

M-09212401641

[JSW CEMENTLIMITED]

The C form should be issued in the same quarter in which invoice has been issued. It has nothing to do with the receipt of material.

Regards,

V.Venkat Raman

[YAGAY andSUN]

Dear Pankaj,

Reply:- Legislation:-

The 2nd proviso to rule 12(1) in the Central Sales Tax Rules (Registration & Turnover) rules, 1957 reads as follows: “Provided further that a single declaration may cover all transactions of sale, which take place in a quarter of a financial year between the same two dealers”.

The 3rd Proviso to the same sub-rule reads as follows: “ Provided also that where, in the case of any transaction of sale, the delivery of goods is spread over to different quarters in a financial year or of different financial years, it shall be necessary to furnish a separate declaration or certificate in respect of goods delivered in each quarter of a financial year”.

From the above two provisos, we stem following conclusions, namely:- 1. If the transactions are taking place in a quarter between the parties (i.e. whatever is being sold in quarter by the seller, is being received by the purchaser within that quarter only), then, a single C form would cover all such invoices which was issued by seller to purchaser in Inter State Sales transactions. Example: - Seller A of the Delhi sells certain goods to the purchaser B of the Haryana in the first quarter of year 2014 and purchaser receives such goods within this quarter itself. Then a single C form will cover all the invoices so issued by seller to purchaser. 2. If case of any transaction of Inter State Sales, if the delivery of goods is spread over to different quarter in a financial year or of different financial years, then, in such scenarios a separate C form or Certificate would be issued by the purchaser to the seller of the goods. Example: Seller A of the Delhi sells certain goods to the purchaser B of the Haryana in the last quarter of financial year 2014-2105 and purchaser receives some goods within this quarter itself and some goods in the Month of April 2015. Then, in this scenario two separate C forms will be issued to cover all the invoices so issued by seller to purchaser. One C form will cover the invoices against which goods were received by the purchaser in the last quarter of the f.y. 2014-2015 and the other C form would cover the invoices against which the goods were received by the purchaser in the month of April 2015.

[JSW CEMENTLIMITED]

I fully agree with the reply and explanation given by M/s.Yagay and Sun and withdraw my reply in toto.

regards.

V.Venkat Raman

AI Summary

Clarification on Form C Issuance: Separate Forms Required if Goods Delivered Across Different Quarters, Despite Initial Invoice Date. A query was raised regarding the issuance of Form C for a sale made on March 31, 2015, from a Haryana dealer to a Gujarat dealer, with the goods received on April 4, 2015. The question was whether Form C should be issued for the March or June quarter. Initially, it was suggested that the form should be issued in the quarter of the invoice date. However, another response clarified that if goods are delivered across different quarters, separate Form C should be issued for each quarter. The initial respondent agreed with this explanation and retracted their original advice.