Sales transaction - interstate

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NARESH (Querist)
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22 September 2012 Dear Sir,

I have certain clarification for the following,

A (Buyer)- Karnataka B (Consignee)- Karnataka >>> C (Seller) Maharashtra

1. ‘A’ is purchased the goods from ‘C’ and sent the goods directly to ‘B’ by Truck. Invoice is raised by ‘C’ was Full Tax without C Form and delivered directly to ‘B’ with ‘A’s instruction. Hence, ‘A’ doesn’t want to issue Form ‘C’.

2. How will raise the Invoice by ‘A’ to ‘B’ – Anyway ‘B’ will not issue C Form to ‘A’.

3. Whether is it considered as E-1 Sales ? but no one will be issuing C Form.

4. How will ‘A’ considered the Invoice in Sales Tax Return ?

Your earliest response is highly appreciated.

Best Regards
Naresh

Amol S Joglekar

Amol S Joglekar (Expert)
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22 September 2012 Purchase is interstate and sale is local. Delivery is DIRECT to party. A to B is FIRST sale in Karnataka and accordingly it is taxed.

NARESH

NARESH (Querist)
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22 September 2012 Dear Sir,

With ref to your mail, please let me know how the Invoice will be?

Please considered the direct invoice value is INR 10,000/- (Full Tax of Maharastra & Excise Duty). When we are raising the final Invoice is it okey if we mention only Selling price mentioned ref of direct Invoice.

Meaning is 10,000/+ Margin - INR 10,309/- (3% Margin)- No local taxes

Please guide me urgently.

Best Regards
Naresh

Amol S Joglekar

Amol S Joglekar (Expert)
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22 September 2012 You may show as mentioned by you but the main question is whether C needs to claim set off or not. If C wants to claim set off, you need to issue him the invoice showing KVAT separately. That is the main CATCH in all such transactions.

NARESH

NARESH (Querist)
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22 September 2012 'C' don't want C Form. we requested to send the goods directly to 'A' (charged tax + Excise Duty). In this regard, 'A' can take the excise duty in return.

Hope, B can issue only single invoice without mentioned any VAT (i.e INR 10,309/-)

Kindly revert me.

Best Regards
Naresh

Amol S Joglekar

Amol S Joglekar (Expert)
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22 September 2012 YEs, b can do so if A agrees for the same. (without VAT invoice)

NARESH

NARESH (Querist)
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22 September 2012 Ya they agree and asked by A that if it is possible to do VAT so they can claim.

In this case there is no question of E-1 sale rite.....

Final invoice can do it as without mentioned VAT. it will be easy for B also.

Amol S Joglekar

Amol S Joglekar (Expert)
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22 September 2012 no question of E1.

NARESH

NARESH (Querist)
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22 September 2012 Ok Thank you. Your suggestion is Make the Invoice without 'C' Form.

Invoice we can raise as INR 10,309/-.

Awaiting for your mail.

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