What is form c and why vat exempted against it?
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.
