Dipen (article) (458 Points)
12 June 2016Hi,
CST sales @ 2% (with C form ) was entered. However sales party defaulted in payment and ran away with the goods. Hence no payment or C-form received. So in this case can we show as sales reversal (bad debts) and claim CST input credit of CST already paid on accrual basis? If reversal possible, then any time limit for the same i.e within 6 months of bill date or any other condition?
If reversal not possible , then will the differential tax amount (CST rate - VAT rate) be payable?
CA. Piyush Jain
(5 Points)
Replied 12 June 2016
Hello Dipen,
In Case of CST sales, burden of proof and producing releted form is on Seller, so providing C" form is duty on seller. if C' form is not provided to Assessing Authority Additional Tax Amount would be = Normal Vat Rate- CST Rate.
However within same quarter you can reverse sell and cst amount (not sure )
CAclubindia
