C Forms Tax Liablities on Deduction, VAT + CST

[Chetan Pawar]

Dear All,

We are supplying the Chemicals to out one of the Rajasthan customer, but as per tender & contract terms our payment its come on  monthly consumption basis & also they have deduct the payment on performance basis as per contract terms.

but as far as C Forms Concerns, They have given the C Forms after deduction but they have not raised the Debit Note for the same , so please advised me if any Sale Tax liabilities has been came on deduction made by the customer?

If Yes, Please advised with all legal aspect,Rules & all regulations.

if no, then please advised how to make the entry in our books.

Thanks & Regards,

Chetan Pawar

9970686579

Posts / Replies

[Pradeep Khatri]

If the customer/client issue the C Form after deduction of some amount due to quantity issue or quality issue from the Invoice/Bill, then, such C form would be deemed as final declaration form.  If your customer/client does not issue the debit note, then , you may issue a credit note in this regard.

[Chetan Pawar]

But what about the c form liabilities, weather it will have to pay to Govt with interest for which amount (Deduction) c Forms not recevied.

[Harish Chander Bhatia]

When it is brought to your notice that the buyer has debited your account and remitted the balance amount to you. You are required to issue a credit note by crediting the buyer and crediting the debiting sales and  CST separately  and claim in your VAT return within six months. In that case you will not be liable to pay any amount on account of short realisation of C form. Revert for more clarification.

[Chetan Pawar]

But Sir, C Form is for the year 2012-2013, then what to do? Please explain with legal sale tax act  provision in this regards