when company issue c form to the seller it has to issue
full amount of purchases or it has to deduct the 2% of cst
amt Ex; purchase for rs.10000/- which includes 40 cst we
have to issue c form for rs.9960 or we have to issue for
rs.10000/- which one is correct
Answer Posted / anil kr bhowmik
Company is to issue 'C'Form only on Rs.10000/- i.e.,on the
GTO amount which includes 2% of CST. But if the company
somehow, by mistake, issues 'C' Form on GTO at 104% (i.e.,
after including 4% of CST) it will get no concession at
all,as we receive from many of our ignorant customers -
which may again attract even penalty u/s-10A of The CST
Act,1956 for misuse of 'C'Form .
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