E1 transaction

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2017 As per Rule E1 Transaction, First sale should be Inter State Sale subsequent sale may be intra state sale. I am in Krishna District, purchased goods from the Dealer who is in Delhi. Issue Advance CST way bill to Delhi and in that way bill mentioned delivered to my customer who is in Guntur District. Now as per rule, I have to collect C form from My customer but he is refuse to issue C form because he was not issue any CST way bill to me, If he issue C form, then that is big mistake and have to pay penalty if VAT audit conducted by the VAT department.
Is his intention is correct?.....
subsequent sale my be Intra state so as per perception no issue is raised from VAT department. Am I Correct in this regard?.....

CA Suresh Jain

CA Suresh Jain (Expert)
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20 January 2017 The sale is an interstate sales only and you need to convince your customer to issue C form. Alternatively Charge VAT and recover balance from the customer. Pay the VAT with interest to save your self from other actions.