Understanding of form c, e1 & e2

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Suraj (Querist)

15 September 2013 Dear Sir,

I request you to clarify on Form C, E1 & E2 under MVAT based on following sample transaction.

There are 4 parties. Mr. A from Maharashtra, Mr. B from Maharashtra, Mr. C from Delhi and Mr. D from Andhra Pradesh.

Here Mr. A sells goods to Mr. B who in turn sells goods to Mr. C and Mr. C in turn sells the goods to ultimate buyer Mr. D.

But actually the goods are delivered by Mr. A from Maharashtra to Mr. D, Andhra Pradesh directly.

My queries are as follows:
1) Whether is this ‘in-transit’ transaction covered under section 6(2)?

2) Which forms will be exchanged between
all the four parties?

3) Transactions between whom will be exempt from tax and which are taxable to CST?

4) Who will ultimately pay tax to the Govt?

5) In the Subsequent transactions, how CST effect will be shown in the bill?

Kindly revert. Thanks,
Suraj

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

15 September 2013 In a series of sales in transit,the first two should be in different states. You A & B are in Maharashtra.When A raises a bill to B,both within the same state,it becomes local sale. Further extended sale by trasfer of documents is not permissible in this case.Also,here B can not give a C form to A which is essential for the E1 and E2 transactions. There can be E1 sale between B, C & D only.....mjk

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