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Third party export-ct-1

V.Marimuthu (Finance Excecutive-Indirect Taxation) (376 Points)

13 September 2016

Dear Experts Kindly clarify the below :

S Ltd is Manufacturer (TN), A Ltd is one of the Dealer (TN) and F Ltd is a Merchant Exporter (MH).

F Ltd has issued CT-1 to S Ltd.

Here, S Ltd has invoiced to A Ltd (within State) without Excise Duty and paid VAT.

A Ltd will be invoiced to F Ltd (Inter State sales)

My doubt is, Here A Ltd is customer of S Ltd not F Ltd and invoiced to A Ltd without payment of Excise Duty because of CT-1 issued by F Ltd.

1)Whether this transaction is correct or not? if it is wrong whether we have pay ED?

2)Whether CT-1 issued by F Ltd to S Ltd is correct?

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2 Replies

Saikat Bhattacharya (Manager- Finance and Accounts) (131 Points)
Replied 13 September 2016

1) Raise your Tax Invoice on Buyer A Ltd charging Sales tax and Excise NIl. However your excise Invoice shall show consingee as Merchant Exporter (F Ltd.) .i.e CT -1 Executing party.

2) CT-1 executed by F Ltd on S Ltd is correct. Since liabilty of submission of Proof of Export with your Excise Dept is lies on S Ltd . Please submit intimation to Excise Range Office with copy of CT-1 before removal of goods.

Hope this will clear your query.

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