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

C Form finality prevents seller liability after payment deductions; issue credit note and claim in VAT return promptly.
When a buyer issues C Forms after deducting amounts, those C Forms operate as the buyer's final declaration. If no debit note is issued by the buyer, the seller must issue a credit note, separately adjust sales and CST, and claim the adjustment in the VAT return within the applicable claim period to avoid liability for short realisation of C Form benefits.