CA Lakshman M (Mphasis an HP Company) (72 Points)
07 August 2010
A seller has not received the 'C FORM' from his buyer since 2 yrs. He had earlier made a sale at concessional rate @ 2%.
If the sale were not made against 'C FORM' then the same goods would have suffered tax @ 4%. Now, notice is sent by sales tax dept asking for payment of difference of tax amount. Also buyer is of no intention to give that C FORM in coming future.
Should the seller pay that difference of tax? If YES, can he claim it from his buyer.
Also can the seller answer to Notice that, since the buyer did not send C Form, he will not pay the difference and also direct the Sales tax Dept. to collect it from respective buyer.
kindly suggest!
Thanking you in Advance!
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14 Replies
(Guest)
This is not excuse that buyer is not giving c form so you cant pay differnce
you have to pay difference if you are unable to deposit c form to the sale tax department
Sale tax department has no interest in transaction between you and buyer.
You will hve to pay the differnce in ur case
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obeid(learner)(292 Points)
Replied 08 August 2010
You have to pay the demand raised by the department and have to claim the amount from the buyer by raising a debit note.
CA Punit GoSwaMi(Chartered Accountant)(310 Points)
Replied 08 August 2010
yes pay the diff..
CA Harjeet singh(proprietor)(22 Points)
Replied 09 August 2010
Seller will have to pay the demand amounting to difference between local vat rate and cst rate.
Regards.
Gagan Agarwal(Manager)(207 Points)
Replied 25 August 2010
Legally, the seller is required to pay the difference between local vat rate and cst rate.
However, the difference can be recovered commerciallyfrom the buyer by the seller(is there any clause in the agreement that in the event buyer does not issue C Form, then seller will recover the difference from buyer). This clause is a saving grace for the seller.
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Ravi Prasad(Self employed)(148 Points)
Replied 26 August 2010
You cannot do anything, but to pay the difference and debit the account of your customer. However, since it is a contract in which the performance of the customer in providing you the C-Form was also a part of the performance, you can sue him for the performance. Option 1 : if the customer gives the C-Form later, then you can ask for rectification and claim refund of the paid amount or Option 2: if the customer doesnot give, you can claim the difference and recover it by suing him inaCourt of law for breach of contract.
Vishal(-)(25 Points)
Replied 07 August 2011
is there any declaration a buyer can give if he has not received c form from department. please poat a format if any.
thanks,
vishal
Bhavesh(CS)(21 Points)
Replied 12 September 2013
Can anyone mail the draft legal notice for non submission of C Form.
also please mark mail to bhaveshmak @ gmail.com
thanks,
bhavesh
Mohammad Nadeem(Student CA Final)(23 Points)
Replied 23 April 2014
if we do not pay the difference amount and also i am having input tax credit , so can we adjust this difference amount from my tax credit ?
RAJU VERMA(ARTICLED ASSISTANT)(39 Points)
Replied 17 June 2014
Sir,
One of our party which is registered in gujarat salestax are not providing us c-form inspite of sending my request so what remedy is there for us.(seller registered under Mahavat)
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Sparta Prasanna(2 Points)
Replied 13 September 2019
Sir do u serve in Tamilnadu. We need To get c forms from our clients from kerela, Karnataka andhrapradesh
Miss Suman(Professtional Student)(44 Points)
Replied 04 December 2019
We can help on arrangement of C form. Contact 7503457727
Bhavna Mehta(2 Points)
Replied 22 January 2021
We have raised invoice cform basis and later party neither paid agst invoice nor issued c form. We filed case in MSME and won the case but by then customer went into liquidation. Now sales tax asking to deposit tax amount. My question is will sales tax consider reducing my sales as I did not even receive payment
Jigar Patel(Owner)(28 Points)
Replied 26 March 2021
Hello sir, we are C-Form collection agency from Gujarat, if you have any problem regarding C-Form, feel free to contacts us
Jigar - 94. 0. 94.90.194
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