Denial to accept C Form by supplier

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shehzad (Querist)

02 November 2009 Dear Experts,

Please help me:

recently our company purchased bull dozer from a supplier in karnataka. in the invoice that supplier added cst @ 4%.

Our company is ready to give C Form against this, but that supplier is not accepting C Form and demanding 4 % only.

What to do??????????

Thanks

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)

02 November 2009 It should have mentioned in your Purchase order as terms and conditions that you purchase against C form being a registered dealer and shold also specify the 2% CST rate in your purchase order.

Now the remedy is negotiation with your supplier and try to know their logic/view for insisting the charging of 4% tax.

shehzad

shehzad (Querist)

02 November 2009 Sir,
Thanks
but what if it is not mentioned in purchase order.
Whether it is not the obligation of supplier to accept C Form?

Vishnu Saboo

Vishnu Saboo (Expert)

06 November 2009 if the supplier has already charged 4% CST without form "C", how he can claim exmption agaist form "C"?
it should be pre decided, i.e. at the time of raising P.O.

Kishanlal Paliwal

Kishanlal Paliwal (Expert)

25 November 2009 To be more specific if P.O. is silent on chargeability of sales tax, it is implied that you are intended to purchase without C Form. The supplier may sale against full CST rates.

Regards

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