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Implications of not receiving c forms

Sameera (Article assistant) (262 Points)

06 January 2015

Hi all

Please let me know the implications of not receiving the c froms from the purchaser even after 3 months from the invoice date as C forms are manadatory requirement.

How to quantify the differential tax amount in case c forms are not received ??

Thank you

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5 Replies

SANESH A K (Articled Assistant) (126 Points)
Replied 06 January 2015

Dear Sameera,

If the dealer is unable to obtain C forms from the buyer / purchaser in respect of inter-state sales at concessional rates, he is liable to pay the diferrential tax to the department. The differential tax can be calculated by multiplying the value of goods with the differential tax percentage.

Regards

Sanesh A K

Sameera (Article assistant) (262 Points)
Replied 06 January 2015

Thank you. Actually my client has not received c forms from the month of April 14. I raised the point saying he needs to pay the differential tax..but my client is telling now a days nobody is following it seriously..I dont know how to make him understand.. Any interest we need to pay on the differential tax portion if we receive the c forms late ?? Please reply

SANESH A K (Articled Assistant) (126 Points)
Replied 06 January 2015

You have to report the same in the year end audit report and advise the client to pay the differential tax liability cos if incase the department find out the same at the time of assessment, they may impose penalty as well as interest. So better advise your client to try once again to obtain C forms and if not possible, to pay the differential tax liability along with applicable interest. Rate of interest may vary from state to state. In the state of Karnataka, it is 1.5% per month.