Non receipt of 'C' Form

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2010 Dear All,
I am a registered Dealer in Karnataka.
We had supplied goods to a Pvt Ltd Company at Secunderabad in the year 2006.
The Co did not issue us the 'C' Forms till date.
Now our Assessment has been completed and are liable to pay the differnce tax Interest & Penalty.
Now it appears that the Person is absconding.
What are the remedial measures.
Further it is learnt that the Dealer has cancelled his registration with VAT.
What is future course of action??
Further the our Audit Officer has accepted the Form F which is filed by over sight and the same is brouht to the notice of the Officer ,but the Officer has dissallowed the Input Tax Credit U/s 17 of the Karnataka VAT Act treating the transactions as branch transfer based on the Form F filed by us.

Now my question is why at all we should pay the difference in tax for non submission of 'C' Forms?
Whther the Interest & Penalty can be waived off as the Dealer has closed his Business.

K Bala Kishan

K Bala Kishan (Expert)

23 July 2010 At the time of making sales to the customer, we have availed concessional rate of tax let us say, full rate of tax is 4% and we have paid only 2% of CST to the department for such sale and availed concessional rate of tax. So, now if you are not providing C form to the department then difinetly u need to pay the differential amount to the department.

The department has to analize as to how to deal with such situations where the dealer closes the business and unable to provide c form as such.

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