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E1 or form f

sushant gurav (Accountant) (391 Points)

27 December 2011

Hello,

Sir,

can u pls tell me..

We are Private limited company in Goa. We also have a iron ore dumping place in karnataka.

We sold some iron ore lumps to a Limited company in Goa. But the actuals iron ore has come from our place from karnataka and we delivered directly to the buying company in Goa. We raised a Invoice and we mentioned it below SALE IN TRANSIT and we have also charged 2% cst to the buying company.

NOW WE HAVE TO GET FORM FROM THE BUYING COMPANY.

WHICH FORM WE WILL ACTUALLY GET.

WE ARE CONFUSED EITHER WE SHOULD GET E1 FORM OR FORM F.

PLS SUGGEST.

VERY URGENT

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9 Replies

chandra shaker (TAX PRACTITIONER) (59 Points)
Replied 28 December 2011

Transit sales are exempted from payments of any taxes, and the said transaction shall be effected between three different dealers (registered dealers under vat and cst) .

Here in your case if karnataka place is the branch of Goa registered officer or vice versa then you cannot execute transit sales against Form E-I /E-II and statutory form 'C' , because same name and style exist with karnataka office as goa and for the same it is clarified that instead of non availability of material at goa you are giving internal order to your other branch at different state to deliver the same on your company account ,then it is purely a cst or local sale in respect to the buyers place situated .and you are responsible to pay the taxes as applicable under local vat taxes or Cst taxes against form 'C' or with out form 'C' .

A transit sales is made exempted from payment of taxes if supporting documents such as P.O., E-1 form ,Statuory form are received by the dealer claiming exemption ............. and more........... it is a triangular series of execution.

G.S.CHANDRA SHAKER

SALES TAX PRACTITIONER

Mobileno. 9395323341/ 9951038001

1 Like

shivam gupta (Student) (142 Points)
Replied 29 December 2011

If goa is a third Party that is not any branch or another unit of Karnataka then this will be considered as Normal sale & CST @ 2% rate will be charged remember dealers must be registered under CST . Hence Goa will issue Form C to Karnataka

& if Goa is an another unit or Branch of Karnataka then the transfer of goods will be considered as Stock transfer & then Goa will issue Form F to karnataka.

shivam gupta (Student) (142 Points)
Replied 29 December 2011

First learn some concepts & then see how Form E1 & E2 comes into picture

What is sales by transfer of documents of title: provides that a sale or purchase effected by transfer of documents of title to the goods during their movement from one state to another shall be deemed to take place in the cource of interstate trade or commerce.

Explanation 1 provides that the movement of goods commences when goods are delivered to carrier and terminates when delivery is taken from the carrier.

Explanation 2 provides that where the movement of goods commences and terminates in the same state it shall not be deemed to be a movement of goods from one state to another by reason merely of the fact that in the cource of such movement the goods pass through the territory of any other state.

For example if goods are booked from Delhi to Mumbai by Railway, movement of goods will commence as soon as goods are handed over to the Railway booking office at Delhi for transport. The movement will be deemed to continue even if goods reach Mumbai and are lying in possession of railways. The movement will be deemed to have terminated only when the delivery of goods is taken at Mumbai on submission of railway receipt. Thus goods will be deemed to be in movement for sales tax purposes till delivery is taken at destination

The first sales must be an interstate sales. i.e the first sale must be interstate sales in order to claim the exemption

Suppose W in Punjab sends goods in Delhi and raises invoice on X in Bihar, during the movement of goods X sells goods by endorcing documents of title to goods in favour of Y who is a dealer in U.P and Y sells ultimately goods to Z who is a dealer in Delhi by further endorcing the documents of title while the goods are still in transit.Z finally takes delivery of goods in Delhi and the movement of goods comes to an end.

Now in above example W will issue E-I form to X and will get ‘C form’ from X.

X will issue E-II form to Y and will get ‘C form’ from Y.

Y will issue E-II form to Z and will get ‘C form’ from Z

1 Like

Kaushik (Professional) (549 Points)
Replied 30 December 2011

Originally posted by : sushant gurav
	Hello, Sir, can u pls tell me.. We are Private limited company in Goa. We also have a iron ore dumping place in karnataka. We sold some iron ore lumps to a Limited company in Goa. But the actuals iron ore has come from our place from karnataka and we delivered directly to the buying company in Goa. We raised a Invoice and we mentioned it below SALE IN TRANSIT and we have also charged 2% cst to the buying company. NOW WE HAVE TO GET FORM FROM THE BUYING COMPANY. WHICH FORM WE WILL ACTUALLY GET. WE ARE CONFUSED EITHER WE SHOULD GET E1 FORM OR FORM F. PLS SUGGEST. VERY URGENT

In your case

1. Both supplier & buyer are in Goa.

2. But Dilivery of goods movment start from karnataka (your branch office) to buyer in Goa.

As per sales tax act, Tax is arrised from movement of goods start from source to destination.

So you have to pay CST in Karnatka as bill should be raised from Karnataka office to Goa Buyer.

If Buyer is ready to issues C form to your Karnatka office then cst rate will be applicable as per karnatak state law otherwise CST rate will be same as local rate of Karnataka for that product will be charged as per Karnataka law.

BTW it should be made simplier with below transection.

1. Branch Transfer Invoice should be prepared by your karnataka branch to your Goa Branch against Form F.

2. Then your Goa Branch will raised Vat Tax Invoice to your Buyer (in Goa) as per local vat rate in Goa.

So Buyer may take vat set off if applicable in Goa.

CA Sukanya Patankar (Senior Accounts Associate) (54 Points)
Replied 30 December 2011

Branch Transfer Form should be prepared by Karnataka Branch to Goa Branch against Form F. Transaction of Sale will be as per VAT applicability of Goa State.

E1 Form is not applicable. Since, there is no tri-party transaction involved.

Yatender Sharma (Senior Accountant) (146 Points)
Replied 20 January 2012

Originally posted by : CA FINAL Sukanya Patankar
	Branch Transfer Form should be prepared by Karnataka Branch to Goa Branch against Form F. Transaction of Sale will be as per VAT applicability of Goa State. E1 Form is not applicable. Since, there is no tri-party transaction involved.

Agree

Yatender Sharma (Senior Accountant) (146 Points)
Replied 21 January 2012

To constitute interstate sales, one of the basic requirement is that there should be sale. If a person sends goods outside from its state to its branch office in another state then it is not sale because you cannot sell goods to yourself. Similarly if a dealer sends goods to its agent in another state who stocks and sells goods on behalf of the dealer, such agent is called consignment agent and such stock transfer is also not considered as interstate sales since there is no sales involved in it, sales will take place when such agent will sell goods. But to prove such stock/branch transfer, F form is required to be produced as proof.

Vineeth CV (CS Trainee) (21 Points)
Replied 15 September 2014

what will be thr procedure if the company liable to give E1 form been woundup...?

Is there any possibility to get the E 1 form..?

P.Wajid (Manager) (22 Points)
Replied 23 January 2015

We have Head Office at Chennai and branches all over India - Mumbai, Delhi, Kolkata, ...... and many other states. Though the Company's name is same, each branch is having a separate TIN number issued by the local VAT authorities of the respective state. Can one Vendor of Mumbai supply materials to all our branches across India as place of delivery by raising invoice against HO at Chennai with 2% CST against C form.