sale in transit central sales tax act

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This query is : Resolved

RABI SANKAR PATRA (Querist)

24 September 2010 Sir,
IPlease clarify whether C form to be issued in following case;

A Ltd of Orissa place an order for some materials on M/s. B Ltd of Haryana. M/s. B limited place order on M/s. C Ltd of Mumbai to supply the materilas to M/s. A ltd of Orissa utilising the Way Bill
of M/s. A Ltd.

Now M/s. B Ltd having office in Orissa, raise invoice to M/s. A Ltd and asking for C form from AM/s. A Ltd.

Kindly clarify whether Form C can be issued by M/s. A Ltd of Orissa in favour of M/s. B Ltd with address inside
Orissa as per Invoice, under Sec 6(2) of CST Act.

thanks

B R Ramesh

B R Ramesh (Expert)

25 September 2010 Hi

the answer is

1)A and B are in the same state

for Ex A is Coustomer from orissa

B is a dealer/Agent from orissa

C is manfufacturor from mumbai

C supplies goods diretley to A

tax invoice will be made by B To A

payment made with Cform to B

B will isuue E -1 form with the payment

THIS TRANSACTION CALLED E-1 TRANSACTION

sunil

sunil (Expert)

25 September 2010 Yes under section 6(2), if the Lorry receipt has been endorsed in favour of A Ltd. of orrisa,While raising the bill by B Ltd. of orisa can ask for form "C" from A Limited orrisa.
B limited will issue form c to C limited and c limited will issue E-1 form to B limited after got the form c from b limited. a limited will issue form c to B limited. B limited will submitt before the VAT/ Commercial Tax depsrtment of his circle/ward form E-1 received from c limited of Mumbai and form c received from A limited Orrisa.
For further clarification you r free to contact at 09425176510.

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