Lost c - form

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2012 Please let me know who has to provide indemnity bond when a duly filled C - Form is lost in transit by the seller.

U S Sharma

U S Sharma (Expert)
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21 August 2012 as the duplicate would be issued by the STO of form issuing party, so he will issue the same.

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2012 i think u have not got my question correctly i have done all the formalities and now the person is asking for an indemnity bond of both the parties whereas if the C - Form is lost with the seller while in transit from his branch office to his head office.

please see if anyone can help me.

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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03 August 2024 When a C-form is lost in transit, the responsibility for providing an indemnity bond can vary depending on the specific circumstances and the procedures of the respective state’s sales tax department. Here’s a general approach to addressing this issue:

### **1. **Role of Seller and Buyer**

**Seller’s Responsibility:**
- The seller generally has to maintain proper records and documentation, including C-forms, for sales transactions. If the C-form is lost in transit from the seller’s branch to their head office, the seller should notify the buyer and also inform the Sales Tax Department about the loss.

**Buyer’s Responsibility:**
- The buyer must ensure that the C-form is issued correctly and reaches the seller. If the C-form was duly filled by the buyer and sent to the seller, the buyer is usually required to provide a copy of the form or any relevant documentation to assist in the resolution of the issue.

### **2. **Indemnity Bond Requirement**

**Indemnity Bond:**
- The indemnity bond is usually provided to cover the risk associated with the loss of the C-form. This bond is a declaration that the parties involved (both seller and buyer) will indemnify each other in case of any misuse or financial liability arising due to the lost C-form.

**In the Event of Loss:**
- If the C-form is lost in transit by the seller, the seller is typically responsible for providing the indemnity bond. However, the buyer may also be required to assist or provide an indemnity bond depending on the state's regulations and the specifics of the situation.

### **3. **Steps to Take**

1. **Notify the Sales Tax Department:**
- Both parties should inform the local Sales Tax Department about the loss of the C-form.

2. **Document the Loss:**
- Obtain a confirmation from the transport or courier service (if applicable) about the loss.

3. **Provide Indemnity Bond:**
- The seller should draft and provide an indemnity bond to cover the risk of the lost C-form. The bond should be executed in favor of the Sales Tax Department, and it should include details about the transaction and the loss.

4. **Consult with Tax Authorities:**
- Contact the Sales Tax Department for specific guidance on the indemnity bond requirements and procedures to follow.

5. **Maintain Records:**
- Keep detailed records of all communications and documentation related to the loss and the indemnity bond.

### **Conclusion**

In most cases, the responsibility for providing the indemnity bond will lie with the seller if the C-form is lost in transit from their end. However, both parties should work together to resolve the issue and comply with the legal requirements.

For precise guidance and to ensure compliance with local regulations, it is advisable to consult with a tax professional or legal advisor who is familiar with sales tax procedures in your jurisdiction.