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
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- Form 121-contradictory opinions
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Stamp Paper for partnership firm change new income tax 2025
- Is Personal Guarantee of Director is Compulsory in case of loan to company ??
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
