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Non submission of 'c' forms till assessment

TSV DIWAKAR (PROPRIETOR) (66 Points)

31 August 2016

A dealer effecting interstate sales against form 'C' declaration and remit 2% of CST. At the end of the year or till finalisation of Assessment he could not get the 'C' declarations from the buyer. Now he suppose to remit higher rate of tax but also he shall be charged interest from day of filing return ?

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7 Replies

Bharath (C.A,C.S) (3983 Points)
Replied 02 September 2016

Hi,

Yes in case of non submission of C forms ., the differential tax plus the interest would be levied for the same.

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TSV DIWAKAR (PROPRIETOR) (66 Points)
Replied 02 September 2016

It is not the question whether returns filed or not? It is the question that the dealer had filed returns stating that the sales are against form 'C' and at the time of assessment he could file 'C' forms. In these circumstances whether the dealer have to remit interest on differencial rate of tax or not?

Bharath (C.A,C.S) (3983 Points)
Replied 02 September 2016

yes you have to remit if you fail to furnish the C forms on the differential amount.

TSV DIWAKAR (PROPRIETOR) (66 Points)
Replied 02 September 2016

Is there any citation please

Bharath (C.A,C.S) (3983 Points)
Replied 08 September 2016

CENTRAL SALES TAX ACT 1956 9. Levy and collection of tax and penalties (Interest Rate - 2%) [[2B] If the tax payable by any dealer under this Act is not paid in time, the dealer shall be liable to pay interest for delayed payment of such tax and all the provisions relating to due date for payment of tax, rate of interest for delayed payment of tax and assessment and collection of interest for delayed payment of tax, of the General Sales Tax law of each State, shall apply in relation to due date for payment of tax, rate of interest for delayed payment of tax, and assessment and collection of interest for delayed payment of tax under this Act in such States as if the tax and the interest payable under this Act were a tax and an interest under such sales tax law.]

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TSV DIWAKAR (PROPRIETOR) (66 Points)
Replied 08 September 2016

Please check your answer once again and re-submit

Bharath (C.A,C.S) (3983 Points)
Replied 09 September 2016

Hi,

PFA CST Act, please refer to Chapter 3,Section 9, 2B. Once you have not submitted C forms, it is implied that you ought to pay tax as per VAT rates, and as you have not paid the same, it will be treated as delayed payment and interest will be charged accordingly. The above citation is perfectly alright.

Attached File : 282281 20160909092840 central sales tax act 1956.pdf downloaded: 602 times