CST clarification, VAT + CST

[Roopa Shree]

Dear Sir / Madam,

We have charged full rate of tax for an interstate customer  for not issuing "C" form.  If the customer subsequently issue the "C" form within 6 months can we adjust the differential tax charged excess by issuing the Credit note.  If the transaction is clear please provide the relevent notification for our record to convince customer.

Posts / Replies

[CA Rachit Agarwal]

At the time of making sale and issue of Invoice as per the CST Rules, we have to mention on the invoice the words "C Form due", whenever the sales is against the C Form. Please also refer the state level CST Rules. Further in some states, we have to provide the annexure for the sales made against C Form.

In your case, as the selling dealers has not made the sale against the "C Form", hence in our opinion on subsequent submission of C Form, excess tax over 2% cannot be written back.

[AJAY KAMPALI]

Dear

If the Form C is produced subsequently after 6 months, credit note can be given for the excess CST charged earlier. The time limit of 6 months is applicable only to Goods returns claims and not to such Credit Notes. The claim for concessional rate of tax can thus be made at a later date also, whether in assessment proceedings or even in appeal. Needless to add, that the differential tax is to be returned to the customer as no excess collection can be made.

Ajay