Requirement of C Form submission of Tax Free Goods

This query is : Open

Ashish Vishnoi (Querist)
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26 January 2009 Dear Friends,

We are manufacturing & selling a tax free goods, but due to non clarification of Sale Tax Department we are depositing CST Tax against C Form. Now department had clarified that our product is tax free and we stopped charging CST tax. During the last year we had deposited full tax against C form. Can we have to also submit C forms for previous Year Assessment? When our product is tax free, Can we claim refund of Previous year Tax? If yes, than please provide me any case judgement decision. My email ID is ashishvishnoi@sify.com

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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26 January 2009 As per the sales tax act you should not charge more than what is collectiable under law. If you have collected then it becomes the government money and therefore it has to be deposited to the government account. You cannot claim from department because now. But in future you can charge zero tax.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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26 January 2009 Upto the extent what law states the opinion given by CA B Srinivasulu is correct, but within the frame of law taking interpretation to our favour there is a way of claiming the tax paid back

It being a detailed procedure, incase you are interested you can call me & I will explain it to you / your accountant

Chandrakant Ambani
Mumbai
9819408963
9821240674

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Ashish Vishnoi

Ashish Vishnoi (Querist)
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28 January 2009 Dear Sir,

My second query is that when our product is tax free,Can we have to also submit C forms for previous year?