Transit sale cst or vat if c form is not submitted

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Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2011 Sir,
My firm is registered in rajasthan and i got supply order from mumbai , therefore i have to purchase material from hyderabad and supply it to mumbai. I want to deliver material directly to mumbai. Now i want to know that whether hyderabad dealer can billing in my firm name and consinee column filling mumbai party's name charging 2% cst. Later i will do billing in the name of mumbai party charging full vat as on rajasthan vat rule because mumbai party will not issue me c form.Is this transaction ok or i have to collect E-1 form from hyderabad dealer and consider it as transit sale.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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29 October 2011 hyderabad party issue bill to you as a buyer and mumbai party bill be address as consignee and material to be delivered to mumbai.

after that you will received original invoice and issue a commercial invoice. all excise duty benifit to be taken by mumbai party on transporter copy whic is issued from hydrabad in your(Rajasthan) and consignee(Mumbai) name. form c to be issue. to Hydrabad party. and you will get form E1 from mumbai.

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2011 Sir i have confusion here about how much tax i have to pay and secondly who will issue me E-1 form hyderabad party or mumbai also while billing mumbai party how much tax will be charged

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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29 October 2011 Mr. Author,
Soppose there are three dealers Viz,R in rajastan,H in Hyderabad and M in mumbai. R is oredring to buy some goods to H and he is asking it to be supplied to M.H will issue an invoice adrressed to R but consignee as M charging CST @2%. R will pay CST @2% and issue 'C'form to H. H will also issue E1 form to R and M will issue a 'C' to R. I think it is now clear to you.If still there are doubts Sec 6(2) and 8(4) of CST Act and rules may be referred.R will issue an invoice to M including the price tax and his profit etc.
No tax will be charged by R in his invoice.
MJK

Sanjeev Kumar

Sanjeev Kumar (Expert)
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04 November 2011 Mr. Krishnamurthy correctly address the nexus of transaction BUT missing one thing that "M" can't issue form "C" to "R" as per author.

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2011 yes m is not issueing c form in that case how much tax i have to charge while billing mumbai party

Sanjeev Kumar

Sanjeev Kumar (Expert)
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07 December 2011 in that a case you can not avail the benefit of concessional CST against form E-I and liable to charge& pay full CST as per Rajasthan Statute.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 In that case i have to charge 5% vat while billing mumbai party

Sanjeev Kumar

Sanjeev Kumar (Expert)
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08 December 2011 you have to charge CST @ __ applicable on that particular commodity under schedule prescribed u/RVAT Act

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