C forms from purchaser

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This query is : Resolved

Kuber Mohindru (Querist)

05 January 2014 Dear Experts

As per the provision the purchaser is required to give C Form if the billing by seller is done on 2% cst. If seller doesnt receive C Form then seller have will have to pay full tax to there state govt. My query is some times purchasers dont give C Forms intensionally or unintensionslly. What can be done in that case? Is it a clear cut lose to the seller of not full collection of tax or something can be done like govt departments where complaint can be lodged where purchaser is forced to give either C Forms or pay full tax as it is kind of a tax invasion & fraud of gettings goods at low tax rate of 2%, later not giving C Forms. Kindly guide with the same.

Thanks
Kuber

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

05 January 2014 In fact,before selling to a dealer the seller should obtain a purchase order from the buyer.If the buyer offers to provide a C form and suggests to charge only 2% he is bound to furnish a C form. After issuing a purchase order and committing himself if he fails to give a C form you can issue a debit note showing the balance payment.For not honouring such a debit note legal action can be initiated.Without such necessary formality 2% CST should not be charged on a sale,unless there is a continuous business link.....mjk

Kuber Mohindru

Kuber Mohindru (Querist)

05 January 2014 Ok thanks for your reply. But certainly there is no safe guard given by govt departments in these kind of situation. And hence seller has to look for there own safety.

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