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

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.