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

[YAGAY andSUN]

You can file a writ petition or issue a debit note on them for balance tax along with interest and potential penalty.

[DR.MARIAPPAN GOVINDARAJAN]

Please issue a debit note.

AI Summary

Buyer duty to provide C-Form can be enforced by issuing a debit note and pursuing writ relief. Where buyers default in furnishing C Forms and sellers face tax demands, recommended recourse is to issue a debit note to the buyer for the balance tax with interest and penalty and, where necessary, pursue writ relief to challenge or stay departmental demands and recover amounts attributable to the buyer's failure to provide the C Form.