Refund of advance cst paid

Dear sir,

One of our client , a granties (wood) suppying company, they transproting timber from one state to their buyers in another state. At the time of transporting the timber , our company issuing bill to the buyer company , for the weight of timber transporting from supplier location and paying advance tax at check post for the bill amount. But at the buyer's part , they are making payment only for the weight of timber what they are getting at the factory site. They are calculating the bill amount based on the quantity they are receiving at factory and cst also to be calculated based on that. So the buyer issuing C form based on the quantity what they received. please guide what to do in our company's books . our company is paying advance CST more than what actually collected from buyer

There is a defect in the buying company's recording practice . The Invoice issued by your client (seller) is a binding document on the buyer . The buying company cannot record the bill for the quantity of timber recieved by them at the factory site . In case if they have a suspicion about the quantity of Timber recieved by them then they can always have a word with the seller . Your client's recording in thier books is correct . The Sales Manager of your company has to place this issue before the buying company's Purchase Manager . In case of excess amount of Advance Tax paid by your client , the client has a right to recover the same from the buying company . Now if the C form has been issued to your client which mentions the quantity of Timber less than the actual then your client has to tell the buying company to adjust the differential quantity in the next C form .

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joji jose

Harshal Fifadra

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