C Forms

collect C Form for only Invoice amount Rs.Rs.4,38,368/- because its not sales return. discount given by company is accounted in rebat & Discount Exps.

According to the CST Act, CST shall be applicable subject to the provision of the Act Generally, dealers are considered ad registerd dealer and unregistered dealer Registered dealer can avail savings in the sales tax subject to an issue of C Form to the suppliers and such C form shall be issued on the invoice amount In the present case, the credit note issued by the supplier is nothing but sales return which has been entertained after the actual sales made. The suppliers duty to pay sales tax to the authorities shall be stand for only net amount and the customers input credit shall stand for actual sales tax paid to the suppliers. The credit note transaction shall be nullified in the bookks of accounts of the paties to the transaction concerned. Hence, C form shall be issued on INVOICE AMOUNT ONLY.

Dear nagesh,

it depends on for what purpose credit notes has been issued, and how you are treating in your books of account.

but in this case it looks to me that you have given some discount because of some technical problem, in this case you should collect c form for original amount