Invoice date to be considered for issue of C Form

[Rk Govindan]

We seek clarification for the following please:

We supplied lead acid batteries to a customer who is in Mumbai, billing concessional CST at 2% subject to production of C-forms. The party is now submitting the C-forms clubbing /mixing the invoice of different quarters in every C-Form, in fact bills of different quarters are scattered in various C-forms instead of taking the date of invoice as the criteria- base to consider for a particular/ respective quarter
On our objection, the party has communicated to us that Commercial Tax Department, Mumbai have issued circular to the effect that the date for issue of C-Form  is to be based on the date of receipt / date of accounting / or date of inspection of goods and not on the invoice date of supply for issue of c forms.

Commercial Tax Department of Karnataka are refusing to accept the C-Form during the audit with a contention that C-Forms needs to be collected on calender quarterly basis covering all the supplies effected during the quarter as per the CST Rules. C-Forms will not be accepted covering the invoices of previous quarters in the subsequent quarter C-Form declarations. In case we fail to comply the directives of the Commercial Tax Department Karnataka, we will land up in paying the differential tax with interest and penalty for non-submission of Correct C-Forms.
But the Mumbai party is neither ready to issue fresh C-Forms on quarterly basis covering all the supplies at the end of each quarter with the date of Invoice as base nor are ready to make payment of Differential Tax in line with Rules/ as per CST Act.
Under the circumstances, kindly enlighten us in the following matter.
01. Is it not mandatory on the part of the Mumbai party to issue C-Forms on quarterly basis taking all the transactions into account?
02. Is there any rule that Date of invoice is not the criteria to issue C- Form.
03. What does the rule say about the procedure for issue of C-Form.
04. Is it not the obligation on the part of customer to follow the rules, alternatively binding upon them to discharge the liability arising due to submission of  incorrect C-forms without adhering to the CST Rules.
05. is there any way out to over the come this problem as per the rule or How do we resolve the issue as per CST act.

 

Thanks in advance for all help.

[Guest]

Dear Sir

 

Pls note the supplier made his bil at the end of the month and as such the buyer accounted the bill in his next month returns. So he is able to get c forms for the said month only and not in the month in which the supplier made his invoice.

 

So the point is you have to produce relevant C form in relevant of his invoices and no matter in which quarter the c forms were issued.

Hope the matter is clear

regads

ravikumar / 9094043313 / chennai, TN

[YAGAY andSUN]

 

Number of Transactions per C forms:

One declaration in C form can cover all transactions in one quarter, irrespective of total amount/value of transactions during the quarter. (Quarter means period of three months). If a transaction covers more than one quarter, separate C form is required to be issued for each quarter.

 

[Guest]

yes the buyer can issue 1 c form per quarter per supplier covering all bills of a supplier accounted in the said quarter irrespective of the date of invoices.

Ravikumar

AI Summary

C-Form issuance timing: buyer may issue one quarterly declaration covering supplies accounted in that quarter, not invoice date. C-Form issuance is tied to the period when the buyer accounts for the purchase in returns rather than the supplier's invoice date. One C-Form may cover all transactions of a supplier accounted by the buyer within a calendar quarter; transactions spanning multiple quarters require separate C-Forms for each quarter. Failure to obtain C-Forms matching the buyer's accounting periods can lead to differential tax, interest and penalties, so parties should align C-Form issuance with the buyer's accounting/receipt/inspection timing.