Implications of not receiving c forms

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

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

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.

Thank you so much for the clarification

ma plessure