VAT Software Solutions
(Department of Commercial Taxes)
No. KSA.CR.248 /08-09
Office of the commissioner of Commercial Taxes, Karnataka, Vanijya Therige Karyalay, I Main Road, Gandhi Nagar, Bangalore, dated 10.12.2008
Proccedings of the Commissioner of Commercial Taxes
Sub: Central Sales Tax (Karnataka) Rules, 1957-Declaration in Form C prescribed to be obtained and furnished under Rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957-simplification of the procedure of its issue - reg.
The provisions of Section 8(4) of the Central Sales Tax Act, 1956 require any dealer effecting sale of goods in the course of inter-State trade or commerce to furnish to the prescribed authority the prescribed declaration duly filled and signed by the purchasing registered dealer, which has been obtained from the prescribed authority in order to claim the concessional rate of tax specified under Section 8(1). Such declaration is prescribed to be in Form C under rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957. The declaration in Form C is required to be obtained by a registered dealer from the Local VAT Office or VAT sub-office on payment of prescribed fee under rule 6(1)(i) of the Central Sales Tax (Karnataka) Rules, 1957. The purchasing registered dealers are required to fill in all the required particulars in the form so obtained and affix their signature before furnishing the original and duplicate portions of the declaration to the selling registered dealers are also required to maintain account of stock and utilization of these delivery notes. The registered delaers seeking fresh declarations in Form C from the department are required to furnish the particulars of utilization of the declaration obtained by them earlier.
The dealers have expressed difficulties in procurement of fresh stocks from the department as per their requirement and the consequential delay in they furnishing C Form declarations to the selling delaers adversely affecting their business relations. They have therefore represented for liberal issue of C Form declarations to them. On the other hand, the department is finding it difficult in ensuring that the C Form declarations issued are not misused and in obtaining the utilization reports from the dealers about C Form declarations obtained so as to ensure recovery of tax due on disposal of goods purchased from outside the State.
After careful examination of the issues involved in the scheme and procedure of issue of C Form declarations, it is considered neccessary to evolve a simple and effective scheme that would ease the difficulties currently faced by the delaers and the department. Accordingly, considering the current satisfactory status of computerization of the department and the dealers and also the extensive interent facilities available almost in all place of the State it is proposed to discontinue the present scheme of issue of C Form declarations and to introduce a simplified scheme of issue of C Form declarations and furnishing of details of their utilization by the dealers.
To begin with, all dealers borne on nthe files of LVO-010 and LVO-030, Bangalore and who are currently obtaining C Form declarations shall make requisition for the such declarations electronically and shall be issued the declarations sought in the following manner from 5.1.2009 onwards:
  • Every such dealer shall log on to the website
  • Using the user name and password communicated to him by the Commissioner, he shall proceed to file his request for issue of C Form declarations required towards inter-State purchases made by him, following the instructions contained in the website. Any delaer who has already been issued with a user name and password for the purpose of electonic filingof details of his purchase and sales or for the purpose of obtaining C Form declarations also. the C Form declarations sought by the dealer would be printed and dispatched to the dealer within three working days from the day of his successful request. Any dealer ishing to collect the C Form declarations personaaly should indicate his preference for such mode of delivery at the time of making his request for their issue and can collect them from the jurisdicational LVO on the fourth working day.
  • Any delaer who is in the list of the delaers required to obtain C Form declarations electronically as displayed in the departmental website shall obtain his user name and password, if it is not communicated to him by 5.1.2009.
  • All the identified dealers shall surrender on or before 5.1.2009 stock of any unused declaration in Form C held with them along with an account of declarations in Form C used by them. Any issue or use of C Form declarations obtained earlier from the Department, by these dealers on or after 5.1.2009 would be in contravention of the provisions of the Central Sales Tax Act and Rules and would attract penal action as per law.
(B.A. Harish Gowda)
Commissioner of Commercial Taxes
in Karnataka, Bangalore
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