How to deal dis matter?

This query is : Resolved

Guest

Guest (Querist)

14 February 2013 A - Kolkata purchase goods from B - (Mumbai)
B raised invoice in the name of A and sent it to GTA (Good transport Agency)
From GTA place A sold the goods to C - Nagpur (Maharastra)
How to deal with this matter as invoice is already issued by charging CST and sent to GTA.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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14 February 2013 Form E will be issued by Kolkatta .
all will be same
a stamp will be applied on invoice for sale in transit

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Guest

Guest (Querist)

14 February 2013 Kindly explain....
as if here is no movement of good to one state to other
goods remain in the same state den dere is VAt na...

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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14 February 2013 But as per law, sale was made to kolkata. So CST was applicable
on the way purchaser sold material to other person
so CST will be applicable.
now Kolkata person put a note on back of invoice that it is sold to nagpur.
kokata person issue C form to mumbai person
and kolkata person issue E form to nagpur

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Guest

Guest (Querist)

14 February 2013 than there is evasion of tax as cst was charged 2 % and vat rate is 4 %

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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14 February 2013 No dear
i explained it was CST sale
but after sale, it converted in CST sale again

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Guest

Guest (Querist)

14 February 2013 its means govt will suffer from 2 % loss.
kindly cite any case law in this regards

CA Prashant Gupta

CA Prashant Gupta (Expert)
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14 February 2013 This is general practice
every company is doing this
you can take ref of CST Act and any book
you will find the answer

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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15 March 2013 @Author - How Goverment is Suffering From 2% Loss ?

@Prashant - This is Not General Practice, This is Law, Pls Read CST Act.
Secondly, There is No E Form in Whole CST Act, Forms are E1 and E2.
Pls Read Section 6(2) of CST Act.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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15 March 2013
A dealer who sells goods in transit has to obtain E-I/E-II forms from the seller and C form from the buyer. Submissions of both E-I/E-II and C form is mandatory to avail exemption.-Phool Chand Gupta v. State of AP 104 STC 601(SC)

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