Filing of sales tax returns annexures

Mention the pending c- forms in snnexure I.

In Maharashtra ; sales tax deptt. issues demand note for returns filed mentioning pending c-forms in annexture I . What is the solution for this .

Firstly , let's understand the system. So there is clarity. Say you are selling goods which if sold within the state will be chargeable to vat @ 5%. However, since vat is a destination based consumption tax. ; in cases where goods are consumed outside the state, the jurisdiction of mvat is lost and CST becomes applicable. In this case , concessional rate of 2% cst is allowed by the vat dept. how the vat dept will know whether goods are actually sold outside the state ? So to confirm and avoid loss of revenue ( diiferential 3% ) , the vat dept required declarations i.e c-forms of purchasing dealer so as to prevent tax evasion anf loss of revenue. Now coming to the query , All pending declarations are shown under annexure I ( and even annexure H in some case ). Now to ensure that possible revenues are recovered , notices are issued and dealers are required to provide the declarations. If declarations are still not received then dealer has to pay differential tax ( in this case 3% ) with interest.