SECTION 6 (2)
This query is : Resolved
08 July 2009
Respected all,
I m having one querry.
Suppose there are 3 parties
A FROM MUMBAI
B FROM BHIWANDI
C FROM TAMILNADU
IF A PLACES ORDER ON B FOR THE GOODS.
B SINCE NOT HAVING GOODS IN GODOWN, INSTEAD OF PURCHASING FROM C , B PLACED ORDER WITH C, & REQUESTED THEM TO SEND THE MATERIAL DIRECVTLY TO A.
PLEASE SUGGEST ME,
CAN WE INTERPRETE AS BELOW.
A SHOULD RECEIVE GOODS FROM C.
A SHOULD RECEIVE THE BILLING FROM B.
EVEN THOUGH A & B ARE IN MAHARASHTRA, B SHOULD MENTION IN IT'S BILL SALE "AGAINST C FORM" & CHARGE 2 %.
A SHOULD GIVE "C" FORM TO B.
B SHOULD GIVE "E1" FORM TO A.
AM I CORRECT???
PLS DO THE NEEDFULL.
SAMRAT
I m having one querry.
Suppose there are 3 parties
A FROM MUMBAI
B FROM BHIWANDI
C FROM TAMILNADU
IF A PLACES ORDER ON B FOR THE GOODS.
B SINCE NOT HAVING GOODS IN GODOWN, INSTEAD OF PURCHASING FROM C , B PLACED ORDER WITH C, & REQUESTED THEM TO SEND THE MATERIAL DIRECVTLY TO A.
PLEASE SUGGEST ME,
CAN WE INTERPRETE AS BELOW.
A SHOULD RECEIVE GOODS FROM C.
A SHOULD RECEIVE THE BILLING FROM B.
EVEN THOUGH A & B ARE IN MAHARASHTRA, B SHOULD MENTION IN IT'S BILL SALE "AGAINST C FORM" & CHARGE 2 %.
A SHOULD GIVE "C" FORM TO B.
B SHOULD GIVE "E1" FORM TO A.
AM I CORRECT???
PLS DO THE NEEDFULL.
SAMRAT
09 July 2009
A can receive the material from C,
C shall bill to B, and consignee adress to A, and A shall bill to B with full amount as per contract, enclosing invoice receivd from C.A should give "C" form to B, and accordingly B should E1 to A.
C shall bill to B, and consignee adress to A, and A shall bill to B with full amount as per contract, enclosing invoice receivd from C.A should give "C" form to B, and accordingly B should E1 to A.
09 July 2009
Form Requirements:
A will give 'C' form to B
B will give 'C' Form to C.
Most Important:
C will give 'E1' form to 'B'.
A will give 'C' form to B
B will give 'C' Form to C.
Most Important:
C will give 'E1' form to 'B'.
09 July 2009
Friends,
Pls see the SC judgement in the matter of A & G Technologies 19 VST 239(SC).
Firstly the present transaction comes under Sec 3 i.e. Inter State Sale. Secondly there are two sales involved one is from B to A & another is from C to B. Thirdly there is a consistent case law stream mandating that if the sale occasions inter state movement then it cannot be effected by transfer of documents. Hence in the present matter
1. The dealer B should claim Sales u/s 3 Ist limb i.e. sale occasioning inter state movement as per the theory of inextricable link. The said theory is established as per SC judgments in K G Khosala, Indian Explosives etc
2. The present difficulty is due to the judgment in A & G sale by transfer of documents is not admissible. Hence there is no issue of E1 forms etc since the form is for sale u/s 6(2). For the sale to be under Sec 6(2) it should fall under second limb of section 3. Since the present sale would be under first limb that is not correct & the dealer may end up incurring the liability.
Pls see the SC judgement in the matter of A & G Technologies 19 VST 239(SC).
Firstly the present transaction comes under Sec 3 i.e. Inter State Sale. Secondly there are two sales involved one is from B to A & another is from C to B. Thirdly there is a consistent case law stream mandating that if the sale occasions inter state movement then it cannot be effected by transfer of documents. Hence in the present matter
1. The dealer B should claim Sales u/s 3 Ist limb i.e. sale occasioning inter state movement as per the theory of inextricable link. The said theory is established as per SC judgments in K G Khosala, Indian Explosives etc
2. The present difficulty is due to the judgment in A & G sale by transfer of documents is not admissible. Hence there is no issue of E1 forms etc since the form is for sale u/s 6(2). For the sale to be under Sec 6(2) it should fall under second limb of section 3. Since the present sale would be under first limb that is not correct & the dealer may end up incurring the liability.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
