CST amount collection in lieu of C-form

3454 views 2 replies

 

Please enligten us on the following topic. We are power equipment manufacturers located in salex tax free zone where CST is exempted against submission of form -C i,e zero tax or else it will be charged @ 12.5%. In 2006 April we have supplied machines charging nil CST against form -C.   But, till date C-form is not recd from our customer and now  they are willing to pay CST amount.  How much amount we have to collect ?...is there any interest + penalty?  Please also let us  know after receiving the amount  what documents we have provide to the customer? Is it proof of CST paid challen or any invoice to be raised.  Please suggest.

Thanks & regards

NS Hosamani

 

 

Replies (2)

if the goods are sold at zero rate or at reduced rate in case of inter state trade a declaration form should be obtained from the party which is required to be produced before the assessing officer at the time of assessment as a proof of such zero rated or reduced rated sale. now in the present situation all the bills were despatched charging no CST. and the customers are now willing to make payment of the CST amount instead of providing the C form. now at the time of the assessment the C form will have to be produced to claim the zero rated sale. but as u will not be able to  provide the same the tax authority will impose the tax rate which ought to have been imposed if it was not a zero rated sale i.e. 12.5%. so u will have to provide this from uor pocket. now what u can do is to charge the whole amount of such CST to the customer.  moreover as u have not deposited CST for the whole year. hence the tax authority will impose interest on that. the returns were also made defective showing no CST there. for that penalty may also be imposed. so having regards to taht u should charge all that amount to that customer. now it will be better to have a discussion with the sales tax authority how the matter should be resolved.

Please enligten us on the following topic. We are power equipment manufacturers located in salex tax free zone where CST is exempted against submission of form -C i,e zero tax or else it will be charged @ 12.5%. In 2006 April we have supplied machines charging nil CST against form -C.   But, till date C-form is not recd from our customer and now  they are willing to pay CST amount.  How much amount we have to collect ?...is there any interest + penalty?  Please also let us  know after receiving the amount  what documents we have provide to the customer? Is it proof of CST paid challen or any invoice to be raised.  Please suggest.

Thanks & regards

Sharan 

 



 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details