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.

[Ganeshan Kalyani]

The following documents will help you in justifying and convince the VAT Authority. They are Original invoice with consignment note of transporter, extract of Goods Receipt Note (GRN) of purchaser, Debit Note for sales return having reference of Original Invoice, Consignment Note, LR Copy, GRN extract of your record, Customer Account where the sales return adjustment is shown. These all will help in convincing the Authority.

[Adarsh Sharma]

If you have declared the sales return in your monthly return while adjusting the sales return tax, u can convience the officer with the help of sales return documents.

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,Even after submitting all supporting documents they haven't accepted it. They are comparing the turnover with the audited financial statement. The authority said two different financial year I.e sale in the previous year and goods return in the current year. Is there any supporting case laws.

[Ganeshan Kalyani]

Further to my reply, I would like to state that the monthly figures would have been corrected in the Annual Report. Annual return supercedes the monthly return. Therefore you check the turnover should in it and accordingly you can defend your point before the authority. Thanks.

AI Summary

Form C issuance timing affects tax liability when returns occur; sellers must document returns and reconcile annual returns.
Issue: Buyer returned goods within the allowed period and issued Form C after adjusting the return, prompting the authority to claim tax on the difference. Operative response: maintain and present original invoice, consignment note, purchaser's goods receipt note, debit note referencing the original sale, ledger entries and delivery receipts; ensure sales return is reflected in monthly returns and reconciled with the annual return and audited turnover to demonstrate that the annual return corrects monthly figures.