Who is liable to issue Form C

[abhishek Sinha]

Dear Expert

we issue a invoice to a Party A which is buying our product on behalf of Customer B.There is a Contract between us and Customer C that B would purchase Material from us on behalf of C.Now we issued invoice to Customer B in which Bill-to Party,Shipped to Party and Payer ,all are Customer B.i.e TIN No.of B is used for Billing.now Customer C is issuing Form C to us for the Purchase made by Customer B on His behalf.

I just want to know that Can Customer C can issue Form C.? in spite of Customer B TIN is used for Billing.

Please Clarify my doubts.

[YAGAY andSUN]

Can you elaborate it in a simpler way? Query raised by you is bit confusing.

[Ganeshan Kalyani]

The first sentence seems to be mistake. However I understand that you being 'A' have billed to 'B' who purchases goods from you on behalf of his customer 'C'. Please correct if I am wrong. With this understanding my view is that if 'C' is issuing Form C to you - 'A' duly applied by 'C' with B's TIN then since you 'A' have billed to 'B' then you should not have any issue if 'C' is issuing Form C to you.

[abhishek Sinha]

Thanks for your reply sir. ..but I wish to elaborate the matter. ..actually we sells pesticides to vantech chemical. .vantech chemical is buying pesticides on behalf of green crop pvt Ltd. ..We raise invoices to vantech chemical in which billed party, shipped party and payer everything is vantech chemical. ..but now green crop is issuing form C to us. ..should we accept it or demand form c from vantech chemical

[Ganeshan Kalyani]

Refer my reply dated 18.12.2015. If Green Crop is issuing you Form C on behalf of Vantech Chemicals with Ventech TIN on Form C then you should not have any issue. Since Ventech is purchasing on behalf of Green Crop then Ventech would have added Green Crop as his additional branch in VAT/CST certificate. If this is not the case, then there is a issue because you have not done any transaction with Green Crop, so Green Crop should not issue Form C to you. Only Ventech can do.

AI Summary

Form C issuance: principal-issued Form C acceptable only when it evidences the intermediary's TIN or authorised issuance. When a supplier invoices an intermediary using the intermediary's TIN, a Form C issued by the principal will be acceptable only if it evidences the intermediary's TIN or authorised issuance on the intermediary's behalf; otherwise the supplier should obtain Form C from the intermediary named on the invoice.