Dear Experts,
During the year 2013-14 and 2014-15, the registered dealer (purchaser) did not issue 'C' Form to the seller on account inter-state sale. Resultantly, Excise & Taxation Department confirmed the demand against the seller and attached the bank account of the seller for recovery of demand along with interest. Till date, the buyer has not issued 'C' Form.
Is there no provision in CST Act for taking action against the purchaser for non-issuance of 'C '-Form ? Is the purchaser not statutorily bound to issue C Form within stipulated period ?
Experts are requested to throw light on the above issues.
Thanks a lot.
Seller Faces Higher Tax Demand Over Missing 'C' Forms; Buyer Not Penalized Under CST Act, Experts Clarify A registered dealer failed to issue 'C' Forms for inter-state sales during 2013-14 and 2014-15, leading to the Excise & Taxation Department demanding payment from the seller, including interest, and attaching the seller's bank account. Experts on the forum clarified that the CST Act lacks provisions to penalize the purchaser for not issuing 'C' Forms. The seller is responsible for collecting these forms and may pursue civil action against the buyer. Without the 'C' Forms, the seller must pay a higher tax rate. The CST Act still applies to certain goods, despite the GST Act's introduction. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
