COMMERCIAL

An integration function

THE COMMERCIAL FUNCTION

Commercial:
- This is a highly integrated function in
an organization. It integrates the
various functional departments in the
org. so as to ensure a smooth flow of
day-to-day business.
- This function is not very discernible
to the outside trade or consumers.
- This is a controlling function.

Major Commercial functions

Smooth conduct of day to day conduct
of business as per the business policy.
Generation of periodic data for MIS and
subsequent review by management.
Centralized purchase
Centralized stores
Statutory compliance
- Customs/taxation/local laws

Major Commercial functions

(contd)

Revenue collection
Banking
Warehousing operations
stocking / indenting / stock transfers
Export / import trade
Liaisoning (with government bodies).

Some common commercial terms

WHAT IS EXCISE DUTY?
Excise is the tax on goods produced but
charged at the time of its removal, i.e. at
the time of sale.
WHAT IS VAT?
VAT is Value Added Tax. It is tax charged by
the registered dealer at the time of sale of
goods (earlier Sales Tax). A VAT dealer can
claim credit of VAT on good purchased by
him just like excise duty.

Common commercial terms

(contd)
WHAT IS C FORM D FORM?
Form C is issued by a reg. Dealer (purchaser)
to seller of goods in case of CST so as to
charge him sales tax at lesser rate. C-form is
basically issued by the central govt to transfer
the goods from one state to another with
concessional rate of tax i.e. 2% only. E.g. A(in
Delhi) purchase goods from B(in Haryana),
then A have two options i.e. either
purchase @4% tax or purchase @2% tax.
Normally to get the
tax advantage, A
should purchase the goods against the C-form.

C & D forms (contd)

D form is issued by the government to the seller
of goods for the same reason.
Example :if material purchase within State and item tax rate is
12.5%.
Item amt. :- 100.00
VAT @12.5% :- 12.50
Total purchase value is 112.50/if material purchase out of state (dealer and
purchaser both are registered )

Item amt. :100.00

CST @2% against form "C" :- 2.00
Total purchase value is 102.00/-

C form the process

declaration in C form;
Copies of C form
Contents of C form
CST rates
C form preparation
Benefits of C form