Non-Submission of C & E1 Forms: Tax Rate Explained

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If you're involved in E1 transactions (interstate sales) and fail to submit the required C Form or E1 Form, the full rate of tax will apply. For items listed under the Third Schedule, which normally attract a concessional rate, the full tax rate of 5.5% will be charged if these forms are not provided by the purchasing party.

shivanand

shivanand (Querist)
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21 July 2021 under E 1 transction what is rate tax for non submission of C form and E1 form,
Ours is Third schedule items attract Full rate of tax is 5.5%

kindly advise
shivanand@app.net.in

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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23 July 2021 Rate will be 5.5%

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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06 July 2024 Under E1 transactions (interstate transactions), the rate of tax applicable for non-submission of C Form and E1 Form depends on the nature of goods and the state-specific tax laws. Here’s how it generally works:

1. C Form:
• C Form is required for interstate sales at a concessional rate of tax. If the purchasing party (in another state) does not provide the C Form to the selling party (in your state), the transaction may attract the full rate of tax applicable in your state.
2. E1 Form:
• E1 Form is also related to interstate sales, specifically for sales against Form E1 for goods falling under the Third Schedule. If the E1 Form is not submitted by the purchasing party, similar implications can arise regarding the tax rate applicability.

Rate of Tax:

• Since your goods fall under the Third Schedule and attract a full rate of tax of 5.5%, this rate will apply if the purchasing party does not provide the necessary C Form or E1 Form as required under interstate sale transactions.

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