issue of C form on rejected goods

GST 3100 views 5 replies

Manoj R. Agrawal

Service

86 Points Joined May 2008

I had sold goods to Daman customer against C form last year 09-10. Later 40% of goods worth Rs. 4 lakh failed in application. That material has not come back to me and directly thrown away by the cusotmer with consent of mine. I had sent material worth Rs. 4 lakh in March 10 against the same. As the amount was big - I had raised invoice on customer for this 4 lakh with 2% CST because it was advised to me that this amount is big and would not be accepted by department as free sample.

Then I raised credit note on the party for 4 lakh and nullify the account. Party has not accounted invoice of 4 lakh at all in its accounts.

I want to know whether I should get C form from party for 4 lakh. As such party has totally denied for issuing the same.

Replies (5)

Ravi Prasad

Self employed

148 Points Joined October 2009

You have to get C-Form from the dealer or pay the difference of tax. Since you have raised two bills both collecting CST, then you have to file C-Forms.

Manoj R. Agrawal

Service

86 Points Joined May 2008

But I have already issued credit note of full amount Rs. 4 lakh to party. Still I have to collect C form.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

ask party for debit note against your credit note, stating the facts, to save your accounts

pradeep kumar jha

accounts executive

34 Points Joined August 2010

you should take c for mas you have raised two bills against form c.

Geetanjali

Article assistant

22 Points Joined June 2010

Firstly, you have to revise, your sales tax return of the period in which such goods was invoiced by you to the client and accordingly your sales tax liability regarding goods wasted of Rs.400000/- shall be reduced by the balance CST i.e. Sales Tax Rate in Delhi of such goods Less Cst @ 2% (Rs.8000/-) earlier paid by you. As aforesaid by you that you have again billed (i.e. you have considered in your sales tax return) and sent goods against the goods wasted, you have compulsory deposit C form with Value Added Tax Department within statutory time allowed/extended time as per notification/circulars issued in this regard. If you have not deposit the same your have to pay tax out of your pocket or have to debit your customer.