23 March 2010
Dear Expert's We have a manufacturing units of medicine in uttarakhand. We sale some products to XYZ in Bihar @1% CST against Form-C, but the party retun the some goods & issue us debit note and charged VAT @ 4%. My question it is right or wrong. please guide me clarify the same.
The customer has to charge CST @ 1% only and not VAT 4%. Talk to the customer personally and ask him to re-issue the debit note for CST @ 1% as it is cst sale made @ 1% tax..even the debit note should be issued by him for 1% cst only.
CAclubindia
