Transaction under form E1/ Form C
This query is : Resolved
Kaushik Gandhi
(Querist)
04 September 2008
I am a mfr in Mumbai. my 1st sale to a party in Ahmedabad(Trader/Reseller). He sells it to a consumer/contractor in Rajkot. What VAT/ Local tax should Ahemedabad reseller charge to Rajkot consumer if : case1 - its a Form E1 transaction; case2 - its a Form C transaction?
Kaushik Gandhi
(Querist)
04 September 2008
2
CA. Harinder Kumar
(Expert)
05 September 2008
1. if it is E1 transactions he (Trader/Re-seller) will not charge any vat to the party.
2. if it is From C transactions then Trader/Re-seller will charge vat from the consumer @ which are acpplicable on that particular proudct in GVAT.
I hope u will know E1 transaction how it route.
2. if it is From C transactions then Trader/Re-seller will charge vat from the consumer @ which are acpplicable on that particular proudct in GVAT.
I hope u will know E1 transaction how it route.
05 September 2008
1.IF IT IS 6(2)i.e.E-1 transaction or subsequent sales, than the reseller may take re-imbursement of CST (Actual charged buy u to the reseller)from the cutomer,depends upon the order placed by the customer.
2.How within a state form C transaction is possible except 6(2) sales?
3. The reseller can only charge local VAT depends upon the item.
2.How within a state form C transaction is possible except 6(2) sales?
3. The reseller can only charge local VAT depends upon the item.
CA. O.P. Agarwalla
(Expert)
17 September 2008
Mr. Gandhi,
Please read section 6(2) of the CST Act, 1956 carefully. The section makes it very clear that for getting exemption u/s. 6(2)[ E-1 sales]some conditions are to be fulfilled;-
01. There must be a movement of goods from one state to another in connection with a inter-state sale.
02. The second seller should effect his sell by transfer of documents of title of goods to a registered dealer.
03. The First seller will issue Form E-1 to the second seller.
04. Second Seller will issue C form to the First seller
05. Ultimate purchaser will issue C form to the second seller.
One more thing, there is no bar that second seller and ultimatr purchaser should belongs to separate states.
Please read section 6(2) of the CST Act, 1956 carefully. The section makes it very clear that for getting exemption u/s. 6(2)[ E-1 sales]some conditions are to be fulfilled;-
01. There must be a movement of goods from one state to another in connection with a inter-state sale.
02. The second seller should effect his sell by transfer of documents of title of goods to a registered dealer.
03. The First seller will issue Form E-1 to the second seller.
04. Second Seller will issue C form to the First seller
05. Ultimate purchaser will issue C form to the second seller.
One more thing, there is no bar that second seller and ultimatr purchaser should belongs to separate states.
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