EXCESS VALUE DECLARED IN FORM-C. IMPLICATIONS.

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..... EXCESS VALUE DECLARED IN FORM-C. IMPLICATIONS.
Query (Issue) Started By: - Sadanand Bulbule Dated:- 10-12-2019 Last Reply Date:- 17-5-2020 VAT + CST
Got 4 Replies
VAT / Sales Tax
Dear Sir While issuing declarations in Form-C under Section 8(4) of the CST Act,1956, the buyer of the goods has mentioned excess value over and above the actual transaction value. Based on such information .....

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..... of excess value, the assessing authority proposes to levy CST on the excess value too discarding the turnover of actual interstate sales. What is the remedy for this kind of proposal to levy tax on excess value, despite non- existing interstate sales to that extent? Pl provide judicial rulings on such issue,if any. Regards. Reply By Ganeshan Kalyani: The Reply: Invoice copy, Goods receipt not .....

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..... e, LR copy, customer ledger account. All these document will help you to substantiate the true value of the purchase against Form C. There can be clerical error committed by the customer resulting in issuing of higher value Form C. The will not justify the transaction alone. Try to convince the tax authority. They are too bound by their internal audit and accountable for the assessment conducted b .....

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..... y them. Hence, they need documentary evidence to back your contention. If they feel the comfort they will accept your stand based on abovementioned documents. Reply By Sadanand Bulbule: The Reply: Thank you so much Sirji. 🙏 Reply By YAGAY andSUN: The Reply: Assessing authority cannot make any addition on the basis of buyer's inadvertent mistake, if C form is issued at higher value .....

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..... rather the sale invoice's value. It is settled legal position. Reply By Sadanand Bulbule: The Reply: Sir, Thank you so much for your continued efforts to throw more light on the issue. Regards.
Discussion Forum - Knowledge Sharing .....

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