Legal recourse for recovering C-Form dues from client

[Srikanth Bandla]

Hi

We are a small partnership firm in Bangalore and have had lots of clients who have defaulted in submitting C-Forms even after multiple follow-ups over the years. Sadly our tax departments & legal system hold the seller responsible and penalises us for helping such clients for no fault of ours.

My question is whether there is any quick legal recourse to force such clients to either submit their C-Forms or recover the dues with penalty from them since it is the buyers responsibility and duty to send these forms as they are solely benefited from the CST billing.

We are currently facing large amount of demand notice from Tax Department for failure of such clients to send us the C-Form.

Pls advise

AI Summary

Firm Seeks Legal Action Against Clients for C-Form Defaults, Faces Tax Penalties; Considers Writ Petition or Debit Note. A small partnership firm in Bangalore is facing issues with clients who have defaulted on submitting C-Forms, leading to penalties from the tax department. The firm seeks legal recourse to compel clients to submit C-Forms or recover dues with penalties, as the responsibility lies with the buyers. Two responses were provided: one suggesting filing a writ petition or issuing a debit note for the balance tax, interest, and penalties, and the other recommending issuing a debit note.