C Forms Tax Liablities on Deduction

[Chetan Pawar]

Dear All,

We are supplying the Chemicals to out one of the Rajasthan customer, but as per tender & contract terms our payment its come on  monthly consumption basis & also they have deduct the payment on performance basis as per contract terms.

but as far as C Forms Concerns, They have given the C Forms after deduction but they have not raised the Debit Note for the same , so please advised me if any Sale Tax liabilities has been came on deduction made by the customer?

If Yes, Please advised with all legal aspect,Rules & all regulations.

if no, then please advised how to make the entry in our books.

Thanks & Regards,

Chetan Pawar

9970686579

AI Summary

Supplier Seeks Guidance on Handling C Forms and Tax Liabilities; Advisors Suggest Credit Note Issuance and VAT Return Adjustments A supplier is seeking advice on tax liabilities related to C Forms after their Rajasthan customer made deductions based on tender and contract terms, without issuing a debit note. An advisor suggests that if the customer issues a C Form after deductions, it is considered final, and the supplier can issue a credit note. Another advisor explains that by issuing a credit note and adjusting in the VAT return within six months, the supplier can avoid liabilities. The supplier queries about handling C Forms from 2012-2013, seeking guidance on relevant sales tax provisions.