C Form Value on as per GRN Date and not as per Billing Date

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Subrata Chingakham

Accountant

31 Points Joined October 2008

C Form from one of our customer from Maharastra were received with values of last week sales relating to 2nd quarter included in the 3rd quarter C form and last week sales relating to 4th quarter included in 1st quarter C form of next F-Y.

On asking for rectification they are claiming thatC forms from the department are issued on the basis of monthly return filed and according to the actual amount of purchases (excluding shortagesif any) been received and booked by thier Depo Location as per their GRN (Goods received note) on monthly basis and not on the basis of the dispatch dates and amount of the Invoice made by the vendor. Hence,corrrection of C forms may not be possible.

Kinldy advise whether the claim of our customer is correct or not. We have been issueing C form on the basis of Supplier date of Inv and C form from our other clients were received as per our Billing Dates.

Requesting all to arrange the part of CST Act and rule or any case laws wherein it is specifically mention that C Form value should be as per the Billing Date of supplier and not on the basis of GRN date of purchaser.

Replies (4)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

There is no such criteria notified by MAHVAT that the purchase can be booked on receipt of goods in physical form only.

Normally in purchase register the purchase is booked on the actual date of bill by seller, and a separate column is provided for actual receipt of goods by purchaser, where the said goods will be "stock in transit" for the period from actual date of purchase to actual date of receipt,

Returns and other docuemts are made out with actual date of purchase, and not on date of receipt,

Its the internal prob of your client that they dont have adequate accounting staff to handle the things, and they are following the old practice when C forms were available on individual consignment basis.

the circular regarding C form issue is as under

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

1) Rule 12(1) of the Central Sales Tax (registration and Turnover )

Rules, 1957 – A single declaration ( in form C) may cover all

transactions of sale, which take place in a quarter of a financial year

between the same two dealers: provided also that where, in case of any

transaction of sale, the delivery of goods is spread over to different

quarters in a financial year or of different financial years, it shall be

necessary to furnish a separate declaration or certificate in respect

of goods delivered in each quarter of a financial year. (Note: Legally,

a dealer may apply for a form for a single invoice; however, it is not

administratively possible for the Sales Tax Department to issue

invoice-wise forms. Similarly, it is not physically possible for a dealer

to apply for invoice-wise forms. Accordingly, the officers should allow

forms only for a period and not for an invoice).

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the word "delivered" does not represent "receipt" but delivery from the seller end, who is eligible to receive the Forms for all deliveries in any specified quarter.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

the reference file is uploaded

Subrata Chingakham

Accountant

31 Points Joined October 2008

As per Manual of Central Rrepository under Sub Rule (18) it is mentioned that " The forms wil l be issued onl y i n respect of transacti ons for which an i nvoi ce has been received, or, as the case may be, has been i ssued. But contrary to this i have come acrross a Trade circular dated 06.12.2007, in which date of delevery is interpreted as

"c) As far as the issuance declarations in form ‘C’ / ‘F’ etc. for interstate transactions is

concerned, the essence is the delivery of goods and not the date of sale or date of

transfer printed on the sale invoice/ consignment note.

5. In view of the above, following instructions are issued as regards the declaration in form

‘C’/Form ‘F’ /Form H etc.

A. The officers in the Central Repository will not refuse the declarations only because for a

given transaction the date of purchase/transfer as recorded by the purchaser falls in

the next quarter/month than the date of sale printed on the sale invoice.

Reference Circular is uploaded

As this are only Trade Circulars and Manuals and cannot overwrite The CST Act, pls see whether any court judgement is their regarding Valid or Invalid of C form due to period dicrepencies in omission and inclusion of Invoice value w.r.t Inv Date for a particular Quater to another Quater. As in our case Sales Tax Deptt has already raised objection.