On 1-3-2012, Venus Ltd., Chennai sold goods worth 10000 to Mars Ltd., Bengaluru.
Questions.
1. Does Venus (seller) ask Mars (buyer) for form C at the time of sale?
Does Venus goes by the mere word of Mars that Mars will give Form C to Venus?
2. What is the time limit within which Mars has to give Form C to Venus?
3. Assuming Mars promised form c, then venus passed following entry in its books on 1-3-2012
Mars Ltd. debit 10200
To interstate sales 2% 10000
To CST Payable 2% 2000
Now what if Mars does not give Form C to Venus !
(a) What entry will Venus pass in its books assuming the Vat rate for goods sold to Mars in State of Tamilnadu is 5%.
Also on what date Venus will pass this entry? is it on the last date of the quarter i.e. on 31-3-12 in this example.
(b) Are there any consequences for Mars to bear for not having issued Form C to Venus?
(c) Any entry to be passed in books of Mars for failure to give Form C or penalty etc.?
Please advise.
Shivani
CAclubindia
