Undertaking against c form

This query is : Resolved

Guest

Guest (Querist)

04 May 2012 Dear Experts,

We face lots of difficulty in getting C form from debtors & end with paying local sales tax on non-production of C form.

Is there any undertaking we can take from Debtors while selling the goods as promissory note that they will issue C form for the sales made to them??

Regards,
Rita Paryani

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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04 May 2012 i think there is on such way to take undertaking when you raise invoice you are charging cst @ 2% with C Form Sales

but somehow debtors are not giving you c form and you will have to pay different between local & c form sales

I think if you have that kind debtors then you need to do is charge local vat to whom,who are not giving C form

Guest

Guest (Querist)

04 May 2012 Thanks!

But many times we dont know we will deal with those debtors in future or not..

Some go in dispute & denying to issue C Form.. In that case I guess getting bond signed by them would be appropriate.. What you suggest for the same..

Regards
Rita Paryani

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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04 May 2012 I think they may be refused to give any bond
and if they accept your terms then how can you treat with them if after than they again not give C form, its not use for any commercial tax department purpose they don't want any explanation they are their only for tax so they always do the same as they are doing as you said earlier i.e we are paying local tax
and even if you are going on that bond you have to go for legal advice that is really expensive too

so one more thing which is really useful to you

when you prepare sales invoice charged cst 2% with C form but collect local tax and tell them when you give c form i will return you excess amount otherwise i will pay to the dept. whenever they demand for non submission of c form and payable of excess amount

Mihir Doshi

Mihir Doshi (Expert)
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04 May 2012 Dear Rita,

One way is you can raise debit note on the debtor for the additional amount of tax you have paid to the Treasury.

Many times Purchasers dont issue C then issue Debit note on the same.

Else you can do is collect advance money from the purchasers as Earnest money / retention money and pay them back when they issue C Form.

Guest

Guest (Querist)

04 May 2012 I guess debtors would prefer to sign bond instead of giving security amount.. But with security amount we are safe..

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Mihir Doshi

Mihir Doshi (Expert)
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04 May 2012 Nobody will ready sign anykind of bonds but they will ready to pay money in advance as earnest money or advance money.

Guest

Guest (Querist)

04 May 2012 Well it depends on mentality of debtors.. We can give them both the options to secure ourself!

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