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Cform submmison time

bhavesh (service) (28 Points)

16 January 2009

Dear Sir,

We are manufacturing machinery in Mumbai, Maharastara.

We sell our machine to outside Maharstra customers charging CST @ 2%.

There are few customers who has not issued the form c for the FY2007-2008 at the time of completion of VAT audit. Is that any law which forces buyer to fulfil his commitment instead of penalising seller for believing the buyer??

What can be repercussion to us( seller) for-

1) Not having c foam at the time of audit.

2) Not having c form at the time of assessment.

As I am a Sales manager and engineer, you can forgive me for novice knowledge of taxation.

Your feedback will be highly appreciated.

Regards,

Bhavesh Desai

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3 Replies

CA Sudhir Halakhandi (PRACTICING CHARTERED ACCOUNTANT) (13401 Points)
Replied 17 January 2009

1.If you don't have C-forms then the rate of tax charged from you will be the state rates. See if the goods sold are tax in the state of Maharashtra at 4% then you will have to pay additional tax of 2% plus interest.

2. The presentation of C-form is the liability of the seller and there is no provision in the law to enforce on the purchaser to give the C-form(There should be but at present it is not there!!).

3. If any purchaser is not giving the C-form then though sales tax law (VAT) does not have any remedy but since you have to deposit the tax for breach of his promise to give you the C-form hence a suit can be filed against him.

4. Even at the time of assessment ,the assessing authority have to power to extend the time for presentation of C-form . Please check the original time of presentation of C-form becasue in law the C-forms has to be presented before close of the following quarter in which the sales is made.

5. At the time of audit if don't have the c-form I think in other state there is a provision to include the list of pending C-forms with the audit report. Check the Maharashtra law from your VAT auditor.

Good wishes.

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shailesh agarwal (professional accountant) (7642 Points)
Replied 17 January 2009

good information

Umesh (Service) (59 Points)
Replied 20 January 2009

Dear Sir/Madam,

We "UB Financial Services" an organization established with a mission to cater to the business houses on the post sales operations, which includes Receivables management, C-Forms collections, TDS Certificates, ARE-3 and other value based solutions and also reconciles customer Receivable books and obtains balance confirmations. We at "U B Financial Services " believe in providing to our clients end to end solutions for all post sales operations, thereby improving company financial.

Services provided to Corporates are:

a.      Share Broking & Mutual Funds
b.      Insurance ( Life & General Insurance )
c.      Accounting & Tax
d.     C forms Collections
e.     Rail & Air Ticketing

Our Team :

Our team is well trained to communicate politely, focus and follow up consistently with the customers, for collecting the Recievables and Tax Forms. The TEAM acts as an interface in providing the required data and documents to the customers, in setting the Receivables / Tax forms. UB has executives operating from Mumbai

We request you to please mail us at ubfinancialservices @ gmail.com for more details about the organization and services we offer.

You can also contact us at 99303 67334 / 98333 78523 /996715407

Regards,

UB Financial Services