Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

RevathiGanesh (Practicing Advocate)     10 May 2011

Form C

what kind of action can be taken against the purchaser who has not given Form-C and increasing the tax liability? can money suit be initiated? in my case the sum is around 2,00,000 and the increase in tax is around 17,000 due to non submission of Form-C.



Learning

 10 Replies

vinay sonpal (A PANEL COUNSEL FOR STATE)     11 May 2011

Money suit or winding up pettion if it is a company can be initiated. You can not enforce issuance of C form in suit.

1 Like

karinabartram (klhgy5ryt)     12 May 2011

Its duty of seller to obtain C form or deposit in lieu of C form at the time of sale. Form C is in the context of inter state sales. This is a form issued by a purchaser to the seller for purchases from another state, at a concessional rate of sales tax. So nothing can be done.

___________________

Miami Real Estate Attorney | Real Estate Attorney Miami

RevathiGanesh (Practicing Advocate)     12 May 2011

Anyway he(purchaser) owe certain sum to the seller, why a money suit cannot be initiated?

A.K.SAIGAL (ADVOCATE)     12 May 2011

Yes, You can recover the paid tax by filling a recovery suit alongwith all expences. Firstly you send a notice to the purchaser and ask for form C if he fails then pay due taxes and  send notice for payment of such deposited tax by you for no furnishing of form C and also issue a debit note to the purchaser. If he fails then file a recovry suits against the purchaser.   

1 Like

Asha Pole (Legal)     13 May 2011

I second with Mr. Saigal but then sending a notice and filing a suit will be cumbersome and an expensive affair.So if you're still carrying on the business with that party, ideally the next bill raised towards any sale can be adjusted against this tax amount.. while meanwhile you pay off the required tax to the govt treasury.

Ashutosh Neogi (Service)     19 May 2011

I agree with Mr. A. K. Singal but as Asha Pole says that it is time consuming and expensive process. it is better to settle the matter mutually by issuing a debit note against which customer can claime that amount of money as his business expense. if not sette by the above mention process then only go to legal process like sending notice etc. but better practice is to collect the C Form at the time of sale by which one can avoid these type of problems..

Dillip Kumar Panigrahi (Service)     02 June 2011

May be the purchaser has not accounted for the purchases for which he is not in a position to obtain Form 'C' from the Sales Tax Dept. Secondly the purchaser might have obtained Form 'C' from the C.T. Dept showing purchases from you as his requirement for Form 'C' and instead of giving the same to you he might have used it other-wise. Both these action warrants departmental action. Hence before contemplating any other action report the matter to the appropriate Sales Tax authority for investigation.

sudalaimuthu, (Advocate and Tax Consultant sudalaipearls@rediffmail.com)     04 June 2011

try to get the C Form from the purchaser. now the law permits the seller to produce the C Form even at the appellate stage with sufficient cause for delay. hence you can insist them to issue C Form otherwise you have to pay the difference of tax and the same can be claimed from the purchaser by filing money suit.

M.V.GIRI (ADVOCATE & TAX CONSULTANT)     26 June 2011

I agree with mr. Ashutosh

Jigar   16 December 2020

are you facing problem regarding C-Form?

Disputed with Buyer?

Buyer not Giving C-Form


contact me @ 94094 90194


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register