Non submission of c form

[Asked by Guest]

Hii all

I have a query regarding non submission of c form

A partnership firm made a interstate sale against c form in 2011 but didn't receive c form from buyer now sales tax department raised a notice for payment.

My question is

1. Now that partnership firm is not in existence so do the demand raised by department is valid??

2.Even after Gst will those non submission of c forms cases prevail and whether they can raise demand on that???

[KASTURI SETHI]

Answer to both queries are 'YES'. Govt. has legal right to raise demand. You are legally bound to pay Govt. dues. Even the firm does not exist, individual partners can be forced to pay. This is practical situation. Govt. Can do until and unless you have stay from court on legally strong ground.

[DR.MARIAPPAN GOVINDARAJAN]

Even the partnership is no more or is dissolved the liability of the partnership is unlimited liability on the partners, unless otherwise provided in the partnership agreement. The Demand of the department is valid. However you may consider the limitation period, if any, in this regard.

Thank u sir for reply so do all the partners are liable to the demand in the profit sharing ratio ??

What if any of the partners didn't turnup for liability???

[KASTURI SETHI]

Recovery of Govt. dues has no link with profit sharing. That is your internal matter. If anybody does not comply with law, law will take its own course. No relaxation for any partner.

Thank u so much sir for reply

AI Summary

Partner liability for tax demands: partners remain personally liable for non submission of C forms and recovery can be pursued.
Non submission of C forms for interstate sales permits the revenue to raise valid tax demands against the seller; former partners of a dissolved partnership remain personally liable under the partnership's unlimited liability, independent of profit sharing ratios. Recovery is a revenue enforcement matter and is not defeated by dissolution or a partner's non attendance, though a statutory limitation defence or a court stay may affect the enforcement process.