• Central Sales Tax (CST): Liability of buyer if he fails to provide C forms to the seller

What is the legal position if buyer does not provide 'C' forms to the seller in regard to interstate sales!
The seller was selling material charging vat @5.5% for sales within Punjab while charging CST @2% against Form'C' for selling the same to buyer in Himachal Pradesh in the year 2011-12,2012-13,2013-14.
Now the buyer is not providing the requisite Form 'C'. How will the department compute the amount to be paid by the seller! What are the options for the seller to recover the same from the buyer.
Asked 5 years ago in VAT

Hi,

- During the assessment, seller will be required to submit Form C. If it is not submitted, seller will be liable to pay differential tax and interest on tax.Tax will be computed from the date of payment of concessional tax to the date of payment of the differential tax.

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !!

You cannot do anything, but to pay the difference. However, since it is a contract in which the performance of the customer in providing you the C-Form was also a part of the performance, you can sue him for the performance.

Option 1 : if the customer gives the C-Form later, then you can ask for rectification and claim refund of the paid amount or

Option 2: if the customer doesnot give, you can claim the difference and recover it by suing him in a Court of law for breach of contract.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi,

You have to pay the difference andclaim the amount from the buyer by raising a debit note.

Is there any clause in the agreement that in the event buyer does not issue C Form, then seller will recover the difference from buyer?

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi,

You will need to pay the difference and then recover the same from the buyer.

 

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

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