Suraj (819 Points)
18 January 2013
Dear friends,
My Query is as follows:
I have shown C forms not received in Annexure I in Form 704 for FY 2010-11. Now I have recevied a notice to pay differential tax liability. I wish to know:
1) Under which Act (MVAT / CST) this tax liability arises??
2) Under which Act (MVAT / CST) I have to pay this differential tax liability.??
Kindly revert,
Thanks
Suraj
Mr Subrata Dasgupta
(Finance Professional)
(171 Points)
Replied 29 January 2013
Dear Suraj
Your liability arises under the Central Sales Tax Act and you have to discharge the liability under the Central Sales Tax Act only in the state of Maharashtra.
Sonu Kumar
(Account Manager)
(665 Points)
Replied 30 January 2013
Agree With Mr. Subrata dasGupta, if C Form have not produced within specified time then government will take it as a local sale and charge Local Vat rate on goods
Suraj
(819 Points)
Replied 30 January 2013
Thanks Mr. Subrata & Mr Sonu,
One more query is that under which form ID this payment needs to be made since its not a payment at the time of filing of CST return (we can not select III E) but the payment arising on account of differential tax?
Kindly revert.
Suraj
Mr Subrata Dasgupta
(Finance Professional)
(171 Points)
Replied 30 January 2013
Dear Suraj
Please do not make haste to pay the differential tax to the authorities. First check whether the "C" Form is received from your customer against the invoices raised by you. If you have not received the "C" Form till date, it is advised to get in touch with the customer and see whether the customer will give you the "C" Form.
You should pay only if the customer refuses to issue a "C" Form. In that case you are advised to raise a Debit Note for the differential tax and interest thereon, on the customer against non-receipt of "C" Form.
As you can see that if you pay the differential tax from your pocket, it becomes an additional expense.
Raising a Debit Note as mentioned above on the customer will ensure that you do not pay anything from your pocket. The customer should pay the amount or the amount can be adjusted from any Open Credits in the customers account..
If you have received the "C" Form then you can aproach the authorities and submit the "C" Form. Having done so there is no liability on you for paying the differential tax.
If you are not going to receive the C Forms , the differential tax should be paid as assessment dues and the interest should be paid under the head of interest.
Hope the matter is clear now..
CA Akshay Somani
(CA)
(79 Points)
Replied 24 February 2014
what is the rate of Vat, we use in calculation of differential amount??? Is highest Vat rate like 12.5% or what???
CA Akshay Somani
(CA)
(79 Points)
Replied 24 February 2014
what is the rate of Vat, we use in calculation of differential amount??? Is highest Vat rate like 12.5% or what???
Sandeep Salve
(Advisory Service)
(121 Points)
Replied 24 February 2014
| Originally posted by : Akshay Somani | ||
 |
what is the rate of Vat, we use in calculation of differential amount??? Is highest Vat rate like 12.5% or what??? |
 |
The rate applicable to the product if the same was sold in Maharashtra, that rate is to be used in calculating the differential liability
CAclubindia
