why issue c form? what is procedure of issuing 'c' form?

Answer Posted / javeed

When a sale takes place between persons residing in 2
different states, Central Sales Tax (CST) is levied. It is
because, VAT can be levied only on local sales.
Form C is issued by the dealer for purchasing goods from a
dealer outside the state in which he resides. The effect
can be understood by looking at following example:

IF Mr A Registered Dealer in Hyderabad (AP) wants to
purchase goods from Mr B a registered dealer in Mumbai
(Maharashtra).Mr B who is selling the goods will charge CST
at 12.5% on the goods. If Mr A issues him "C" Form then Mr
B should Charge him CST @ 2%; so Mr A is Saving Tax. That
is, if a inter-state sale transaction takes place between
unregistered dealers, CST charged would be higher

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