What is form c and why vat exempted against it?

Question

What is form c and why vat exempted against it?

Answer 1

C form is nothing but it is used to claim the sales tax.

It is the central govt sales department product.This C form helps to claimthe sales tax paid by you it helps in returning approx 7% annually.It is also help full to get dicount in the purchases coz some may charge 3% and some 2% the difference will be known as the C froms attraction.

Answer 2

make it a note its not used for vat.

"C" form used in Interstate trade and buyers need to provide to dealers to get lower charge of tax "Central Sales Tax".

Answer 3

Form 'C' is a declaration given by the buyer to seller declaring therein details (Bill No, Date, Amount, Commodity etc.) of purchases made. The seller present it to the local sales tax/vat authorities telling that he sold goods on exempted or on less rate of Central Sales Tax.

Actually and in reality there is no exemption against it though it seems.  When a buyer purchases it at less rate of VAT or exempted then he is selling these commodities at the rate of his cost plus profit so the value go up and he charges VAT on this increased value and in this process Govt. ends in getting more tax.