Genuineness of C form

[Binu Karuthedath]

Dear Sir

Recently of the Kerala VAT Assesse has been submitted C form regarding the interstate sale . But Assessing officer has sent notice to proof the genuine of the C Form .Is that procedure is valid?. The problem is on the purchaser is now not in active in business in their state .Kindly guide us

[Ganeshan Kalyani]

Sir, the statutory form favouring concessional rate of tax is required to be substantiated. In absence of supporting documents evidencing the nature of transaction differential tax may be demanded. This is because in past it was experienced misuse of such form . Hence the need arised. Thanks.

[Ganeshan Kalyani]

Sir, the documents like purchase invoice, goods receipt note, LR copy which proves the movement of goods should be collated to prove the interstate transaction. The list of transaction covered in a single statutory form is annexed with the form. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

You may contest if it is genuine one.

[Ganeshan Kalyani]

Sir, the department is becoming more concern in checking the concessional forms. I have seen a Circular issued in one State addressing to the Assessing Officers by the Department to ensure specifically about the forms. Also I have seen a Circular in another State where various checks available in the forms were elaborated. Similarly to that of the security feature a currency notes has. Thus in nutshell utmost care is required in respect of forms.

AI Summary

Genuineness of statutory concessional form: verification requires invoices and transport proof or may trigger differential tax demand.
Assessing officers may require verification of the genuineness of statutory C forms and, absent supporting documents such as purchase invoices, goods receipt notes, and transport documents proving movement of goods, may demand differential tax; departments have issued circulars advising heightened scrutiny and use of form-specific checks, so sellers must collate transaction-specific records to substantiate interstate sales.