Forms to be Availed to get Concessional Rate of Tax under CST :

1. Form C When the goods are sold to a registered dealer, Form C is the prescribed form for availing tax concession. Following conditions must be fulfilled a. The selling dealer shall obtain Form C from the buying dealer, which is duly filled and signed by the buying dealer. b. The buying dealer shall issue two counterfoils of form C to the selling dealer and shall retain the third one. The selling dealer shall handover the original to the assessing authority before the completion of assessment. c. The buying dealer has to obtain Form C from the commercial tax office of the appropriate state on payment of prescribed fee. d. The concessional rate of 2% is not available if Form C is not obtained.

Precautions to be taken before issuing Form C by the buying dealer: 1. The buying dealer shall be a dealer registered under CST Act in the appropriate state. 2. He has to obtain the Form C only from his assessing authority. 3. He has to issue Form C only for those goods which are duly included or mentioned in the registration certificate obtained by him. 4. The goods purchased against form C snail be only for the purpose mentioned in the provisions u/s 8 of CST Act. 5. In case the Form C is misutilised by the buying dealer, penal provisions will be attracted.

2. Form F Where the goods are transferred from the head office to the branch or from one branch to another branch situated in two different states, the CST will not be levied if the transferor branch submits 'Form F' in the prescribed form. Following conditions must be fulfilled : 1. The transferor branch shall obtain Form F from the transferee branch which is duly filled and signed by the transferee branch.

2. The transferee branch shall issue 2 counterfoils of Form F to the transferor branch and retain the third one. The transferor branch shall handover the original to the assessing authority before completion of assessment. 3. The transferee branch has to obtain Form F from the commercial tax office of the appropriate state on payment of prescribed fee. 4. If Form F is not obtained CST will be levied on inter-branch transfers as if there has been a sale.

Exemption from Tax Following kinds of sale are exempt from CST : a. Sale-in-transit, b. Sale of electricity, c. Sale or purchase within the state, d. Export or import sale, e. Consignment sale, f. Branch transfers against Form F.

Turnover (2 (j))

Turnover in relation to a dealer liable to tax under CST Act means the aggregate of the sale price received and receivable by him in respect of sales of any goods in the course of interstate trade or commerce made during any prescribed period and determined in accordance with the provisions of this Act and rules made thereunder.

The prescribed period shall be a quarter ending on 30th June, 30th September 31st December and 31st March.

Determination of Turnover (Sec 8 - A) From the aggregate sale price the following items shall be deducted : 1. Sales returns made within a period of 6 months from the date of delivery of goods. However such claims should be supported by documentary evidence to the satisfaction of the assessing authority. 2. Items exempted by notification u/s 8 (5) of CST Act are also deductible for arriving at the taxable turnover. 3. The Central Govt, may prescribe such other deductions from time to time, having regard to the prevailing market conditions, facility of trade and interest of consumers.

From the aggregate sale price the product of the following formula is to be deducted for arriving at the turnover :

Rate of tax X aggregate sale price + 100 + rate of tax

Where the turnover of a dealer is taxable at different rates, this formula is applied to^each part of the turnover separately. However, no deduction on the basis of above formula is made if the amount by way of tax collected by a registered dealer, in accordance with the provisions of this Act has been other wise deducted from the aggregate of sale prices.