Tax World

Imperative Procedure for Obtaining C forms
in Karnataka under CST Law – Electronically
By CA Sanjay M. Dhariwal

1. CST law (Notification No. KSA CR.248/08-09) dated 21-3-2009

The Commissioner of Karnataka has notified certain dealers whose names are declared in the website http://ctax.kar.nic.in. Most of the notified dealers have received the username and password to login in the website. In case their names are notified and not received their username and password by 25th April, 2009, then they can make an application to the concerned jurisdiction (LVO) for username and password. Once username and password is received then the dealer can login with the same username and password. After login for the first time the contact details of the dealers are to be entered like name, address and contact number. Later then the dealer can create his own username and password. After that a request for C form should be made where the details of seller (Outside the state) should be entered. After application for C form, the C forms will be processed and dispatched within three working days from the date of request by the concerned LVO. In case forms are obtained before 25th April, 2009 and not issued then they have to be submitted to department and fresh application for C form has to be made. The dealer should update the status of issue, utilization and stock of C form

The procedure to obtain Form ‘C’:

a) Login to the department website http://vat.kar.nic.in using the username and password issued by the department.

b) Make a request for C Form in the manner, and as per the instructions prescribed in the website. (Procedure is explained in brief at below)

c) The dealers who are not been issued with the username and password on or before 25-4-2009 to login to the website, they can make an application to the department requesting to issue the username and password.

d) The request of the dealer for issue of ‘C’ form will be processed and will be dispatched to the dealer’s address within 3 working days from the date of his successful request by the concerned LVO. If the dealer wants to personally attend and receive the C forms from the LVO then he shall inform about that when making a request for C forms. And he will be eligible to collect only on the 4th working day after his successful request.

e) The C forms lying with the dealer shall be submitted to the department on or before 25-4-2009. If the forms are not submitted before such date then, the dealer will be liable to penal action as per CST Act, 1956. The forms obtained on or before 25-4-2009 cannot be issued after 25-4-2009; they have to be compulsorily submitted to the department.

If the dealer does not comply with the above provision in point (e), then he shall be liable to penalty under the Central Sales Tax Act, 1956. All dealers liable to obtain C form electronically should update in the website, about the details of utilization, issue, balance in stock and other details as mentioned in the website.

Procedure to obtain Form C electronically

1. Enter the website http://vat.kar.nic.in.

2. Login with entering Username and Password.

3. Select New Entry or Request Entry from Online CST Forms Menu.

4. Enter the details of the Party and Invoice like Party name, Address, State, TIN, Invoice No., date, value, commodity name, uses of commodity etc. It is to be noted that the commodity name and uses will be already there in the drop down list, you have to select one of them as applicable.

5. Then Click Add button and the entry will be updated and shown at below while you can enter the next invoice details.

6. After entering all the invoices the user can go to main page and click Submit to make a request. Then the screen will appear which shows “Submit All” button. By clicking this, the user makes a request to the department.

7. If the user does not want to “Submit All”, and want to submit only selected invoices then he can click the “select” button appearing before each invoice details and then a screen will appear which will allow him submit the each invoice wise.

8. Finally, there appears a screen showing the acknowledgement of request, a printout of it can be taken for future reference.

9. Most importantly the request should be successful to get the Forms from the department. The status of whether request is success or still pending can be seen by clicking “Status” button on “Online CST forms” menu.

2. CST law (Notification No KSA CR.248/08-09) dated 28-8-2009

Every dealer who was notified in the Notification No. KSA CR.248/08-09, dated 21st March, 2009 (as stated above) was provided an option of self printing of declarations in Form C. The above notification partially modify by explaining the declaration of Form C in following manner with effect from September 10, 2009.

a. Every dealer shall log to the website http://vat.kar.nic.in/.

b. With the user name and password as communicated to the dealer, he shall proceed to file his request for issue of declarations in Form C in such website. He can also indicate his option for whether he would like to print the form themselves or would like the VAT officers to print it.

c. Then the declarations in Form C would be approved electronically by the concerned officers within three working days from the date of his successful request

d. After approval the dealer can print the declarations in Form C in triplicate on A4 size paper of not less than 75 gsm. Each declaration form so printed will have a unique number assigned on it. After printing the dealer can have the seal of the concerned department officials.

e. In case the dealer has opted for printing of forms by the department officials, then such officials should print and dispatch to the dealer within three working days from the day of successful request subject to payment of fees. If the dealer wants to collect personally then he should disclose the same when he has to send request for mode of delivery. In such instance such forms can be collected on fourth working day.