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Other state purchase without cst registration is an offence?

VAT (Legacy) 539 views 2 replies

Anand

Accountant

25 Points Posted on 14 April 2014

Dear sirs, Please advise me in the following issue.........

My client has doing pharmaceutical business in Andhra Pradesh. He is purchasing products from Haryana and the seller is billing 2% cst tax. My client has got AP VAT registration but not CST registration. They do not know about this CST registration until the seller asking for Issuance of C Forms for the above purchase. Really, they do not know it. They have purchased products are all food products and the rate of tax is 14.5% is paying to the State Government regularly. For this, what is the remidy for getting C forms or they are liable to pay penalty to the Government for not having CST registration ? Awaiting for valuable suggestions.

Thanking you

with regards

Anand

Replies (2)

CA Gaurav Mittal

Partner

1230 Points Posted on 14 April 2014

well you should ve got registered under CST act too, however the CSt number and VAt number is same. I dont know how you have filed the return as there is a option of CST Purchase.

However what you can do is pay the difference to the vendor (14.5-2%) together with interest to settle the account once.

and now start afresh wid CSt Registration

Anand

Accountant

25 Points Posted on 14 April 2014

Thank you for reply sir. We have applied Cst registration now and got it. My doubt is whether any penalty is imposed to our previous year transactions by State authorities. .