flora (accountant) (28 Points)
04 April 2012Sir/Madam,
We are into bio pesticides and fertilizer business since 2009. We have billed to some dealers outside Andhra Pradesh with a CST of 3%. Our company accountant didn't collect C Forms from them.
Now we have received a showcause notice for AP Commercial Tax department.
Kindly help us how to approach this.
Thanks
Pushpa
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 18 April 2012
Sales made involving inter-state movement ,VAT can be charged at lower rate of 3% provided the buyer issues the concessional form of sales (C-Form).
In the absence of production of C- Form for the above sales,the normal apllicable rate of the goods has to be paid.
So best course would be to request the CTO to give time for production of C-Form and collect it from the buyer.
kkm
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 19 April 2012
Try to collect the C form now. If not possible pay differential tax of Local VAT rate of the goods less 3%.
CAclubindia
