Denial to accept C Form by supplier

This query is : Resolved

shehzad (Querist)
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02 November 2009 Dear Experts,

Please help me:

recently our company purchased bull dozer from a supplier in karnataka. in the invoice that supplier added cst @ 4%.

Our company is ready to give C Form against this, but that supplier is not accepting C Form and demanding 4 % only.

What to do??????????

Thanks

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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02 November 2009 It should have mentioned in your Purchase order as terms and conditions that you purchase against C form being a registered dealer and shold also specify the 2% CST rate in your purchase order.

Now the remedy is negotiation with your supplier and try to know their logic/view for insisting the charging of 4% tax.

shehzad

shehzad (Querist)
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02 November 2009 Sir,
Thanks
but what if it is not mentioned in purchase order.
Whether it is not the obligation of supplier to accept C Form?

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Vishnu Saboo

Vishnu Saboo (Expert)
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06 November 2009 if the supplier has already charged 4% CST without form "C", how he can claim exmption agaist form "C"?
it should be pre decided, i.e. at the time of raising P.O.

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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25 November 2009 To be more specific if P.O. is silent on chargeability of sales tax, it is implied that you are intended to purchase without C Form. The supplier may sale against full CST rates.

Regards