C form pending from 2006

[yujin kim]

We didn't submit to any party Cform from 2006.

It  can be problem?

I don't know how to get the C form and where to start.

Please inform to us.

[YAGAY andSUN]

Dear Sir,

1. You would have to discuss this matter with the Commissioner of Maharashtra VAT. If possible, then he would surely help you out provided you had correctly filed the VAT Returns since 2006 till date by mentioning all Invoices, Bills etc in the VAT returns pertaining to Interstate Sales.
2. Yes, it can be an area of concern, if you don't issue a C form.  You would have to pay Balance amount of Tax to your suppliers along with Statutory Interest and penalty (if imposed at the time of assessment).
3. For getting the C forms, you would have to apply to your concerned jurisdictional Maharashtra VAT Department by filing prescribed application (or you would have to file on line application, as the case may be) on quarterly basis for each year.

Also discuss this matter with you key employees that what is reason for creating such mess and also discuss this matter with you VAT Consultant that how to handle this matter to minimize the financial risk due to non compliance.

Further, it is advisable that you should restructure you Finance Team and hire good consultants.  If there is requirement to employee experts in the field of Taxation (Indirect and Direct) then, you should not have second thoughts in your mind, otherwise, such matters would have tendency to creep in and will sequeeze you profit margins.

Best Regards,

Pradeep Khatri

[yujin kim]

Dear sir

 

Our auditor 's mistake he didn't put the outside of Maharashtra purchase detail in our VAT return,

So VAT return is revised, then we can go head to receive the C form.

But recent one only possible. I think.

 

And one of VAT consultancy said we are job worker, excise, sales tax not applicable when we sales,

so C form liability is no.

Is this true?

then we don't have to give C form to that party.

[YAGAY andSUN]

Well, in your books of accounts what were the accounting treatment given for such transaction? If it was an income from jobwork transactions then no C  is required provided it should be a pure jobwork.  Not of the utilisation of your material in the course of jobwork.

If you had treated such transaction as sales i.e. Interstate Sales while charging concessional rate of tax, then C form is mandatory.

Further, I recall my memory that on the same issue, I had freezed my views.  Please check.

AI Summary

C form requirement: absence can trigger suppliers' tax recovery with interest and penalties; verify jobwork exemption and revise returns. Absence of C form for interstate transactions can expose the taxpayer to claims for unpaid tax with statutory interest and penalties; remedial steps include revising VAT returns to disclose interstate sales, applying to the jurisdictional VAT department for C forms on a quarterly basis, and consulting authorities. A genuine jobwork exemption negates the C form requirement, but transactions treated as sales or involving utilisation of material necessitate C forms, so review of accounting treatment and specialist advice is required.