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

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.