Issuance of Statutory Forms (C Form) in Advance under DVAT
a) Amendment in Issue Process
DVAT has issued Circular No. 12/2016-17 dt. 8 Aug. 2016 to make partial modification in it’s earlier Circular No. 24 of 2012-13 dt. 12 Dec. 2012 on the subject to change the words, ‘Special Commissioner-II’ used in point ‘iv’ to be read as ‘Special Commissioner (Policy)’, henceforth.
b) Issue Process
DVAT Deptt. has issued Circular No. 24/2012-13 dt. 12 Dec. 2012 after examining the matter of advance issue of ‘C’ Forms. DVAT Deptt. has decided to discourage advance issue of forms except in exceptional circumstances. Also, it has stipulated that the item should be allowed on the Central RC of the purchasing dealer for stated purpose. In order to check any misuse of these forms, the Assessing Authorities are directed to strictly follow the following guidelines: –
i) The purchasing dealer shall enclose a letter along with the requisition slip from selling dealer clearly stating that “goods will be dispatched only against advance statutory forms”.
ii) Name & address of the Assessing Authority of the selling dealer alongwith copy of Registration Certificate of selling dealer may be made available by purchasing dealer.
iii) Proforma invoice indicating the amount of purchase, excluding CST, cash discount, job work, cost of Freight, deliveries, freight or Installation, if separately charged and admissible as deduction.
iv) The Assessing Authorities shall obtain approval of Special Commissioner-II on file before issue of the advance forms.
v) Advance forms may be issued through the DVAT system only.
vi) The form may be duly filled in recording the Name, RC No. of the dealer as well as its selling dealer and on the top of original copy, it may recorded in red ink- “ADVANCE FORM” issued for a sum not exceeding Rs. (as mentioned on proforma invoice) for purchase of item valid for (FY). A transparent tape may be pasted on the above words.
vii) Adequate security should be obtained from the purchasing dealer to safeguard against possible misuse of form.
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