CREDIT SALES

[Guest]

Sir,

I have a problem with credit sales. We have made a credit sales from our Godown which is 100Km away from our principle place. We have registered the same place with our Circle CTO Office. The sale procedure was completed and bill was raised and taxes is paid to the CTO. The delivery of the goods was done after three months by issuing the Form JJ. We did not deliver since the payment was not recd from our customer. After receiving a part of the amount we have delivered the goods. Now our CTO is claiming that the goods delivered by Form JJ should be taxed again. Kindly let me know is it violation of rules by issuing Form JJ after raising the Invoice. Please let me know clearly and the rule section numbers.

[YAGAY andSUN]

Dear Kishore,

The assessing authority may ask you to pay the tax as you had only issued the invoice but did not delivered the goods. After three months you are delivery the goods.  This step creates suspicion and therefore, you are being asked to pay the tax.  Onus of proof is on you now to show the bonafides to the TNVAT Department.

So in our opinion if you deliver goods after three months of  the issuance of Invoice, then, you may have to pay the tax again, if you could not prove your contentions.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

yagaysun at the rate of india.com

9818131923

AI Summary

Delayed delivery after invoicing can trigger VAT reassessment unless the seller proves bona fides and documentation. Delayed delivery after invoice issuance can lead to a fresh VAT/CST tax demand when the gap between invoicing and actual dispatch raises suspicion; issuance of Form JJ at delivery does not automatically prevent reassessment. The onus of proof is on the supplier to establish bona fide commercial reasons and corroborative records for the delay to avoid additional tax liability.