C fomr

Dear Sir/Madam,

I have made CST sales of Rs.100000/- during period April to June against C form, by mistake buyer has booked wrong purchases of Rs.105000/- in books and issued C form of Rs. 105000/- to seller.

after scrutiny of account found wrong purchases has booked and pass journal entry in books by buyer.

same C form ( Excess amount) has received by us ( Seller) now my question is at the time of assessment while submitting the C form to department we face any problem due to excess amount of C form which produced by buyer.

Regards

Purushottam Goyal

 

Replies (1)
In opinion, the CST is can be collected only on the sale price. As per your invoice the value is rs 1lac not the the 1,05,000 so your liable to pay CST is on 1lac not on 1,05,000.Department can not ask to pay the tax on which is not sale price as per section 2(h) of CST Act,1956. Burden of prove is on you to show the value is 1lac not 1,05,000.

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