Form 'C' Procedure

[Srivatsan Krishnamachari]

Dear Friends,

The CST Act clearly states that the Declaration (Form C) shall cover all transactions pertaining to one Quarter in a single form and seperate Form' C' has to be for transactions in different quarters unless a transaction spreads to more than one quarter. Hence if a buyer by mistsake club transactions pertaining to two quarters in one Single Form, can the Assessing Officer of the Seller be requested to accept the Form 'C' submitted in theabove said manner when other things are in the prescribed manner. Does the Assessing Officer has discretional power to accept such Form 'C' or Fresh Forms 'C' covering transactions on quarterly basis  have to be obtained from the buyer concerned and submitted by the Seller.

I assume the Onus is on the buyer who avail the concessional tax to provide the Seller with Proper Form 'C' in the prescribed manner obtained from the Prescribed Authority. Am I right.

Kindly clarify.

Thanks & With Regards,

K.Srivatsan

[vivek singh]

As per the law, The onus is always on the Assesse. It is not acceptable by AO. If this time AO accept than further, at the time of assessment this question will arise again that why dealer mention 2 qt. transaction in one C Form. At the end it depends on the AO opinion.

[Guest]

The Rules clearly say that transactions during a quarter can not be covered in a C form issued for the next quarter.  

THe AO will definitely return the C forms issued for the both quarters for necessary inclusion and deletion.  It is always advisable that all the rectifications are properly carried out before submission to the AO.

 

For reference extract of the corresponidng rule is given below.

 

THE  CENTRAL  SALES  TAX  (REGISTRATION  AND TURNOVER)  RULES,  1957

 

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:

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.

 

Thanks and Regards,

 

R  USHA

VAT and CST consultant

 

AI Summary

Form C quarterly rule: separate declarations required per quarter, officers likely to reject combined Form C. Form C declarations must correspond to the quarter of sale: deliveries within a single quarter may be covered by one Form C, but deliveries spread over different quarters require separate declarations for each quarter. The onus to obtain and furnish properly drawn Forms C lies with the buyer/assessee claiming concessional tax. An Assessing Officer may return or refuse combined Forms C covering multiple quarters, and acceptance is subject to the officer's view and may be questioned at assessment; therefore rectification and submission of separate quarterly Forms C is advisable.