Form c issues

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,One of my client have sold goods in the month of March and declared sales as well remit the tax due to the respective authorities. And subsequently the buyer had return the goods to seller after 3 months but within 6 months. When the buyer issues the form c to the seller only after adjusting the goods return value. Now the authority is asking for tax on the difference in form c value. Whereas we explained and submitted all supporting documents. Can any one helping on this subject with case laws.

AI Summary

Tax Authority Demands Payment on Discrepancy in Form C Value After Goods Return; Experts Advise Using Original Documents A client sold goods in March, declared the sales, and paid the necessary taxes. The buyer returned the goods within six months, adjusting the value in the Form C issued to the seller. The tax authority is now demanding tax on the difference in Form C value. Despite submitting supporting documents, the authority rejected the explanation, citing discrepancies between the turnover and audited financial statements due to the sale and return occurring in different financial years. Experts suggest using original invoices, consignment notes, and sales return documents to justify the case and recommend checking annual reports for corrections.