Clarification on application of e1/e2 form for imported good

Dear All,

I have a question related to interstate slaes of imported goods. Suppose Firm A ased in angalore, Karnataka is importing goods which are cleared at Chennai Port. It has to make a sale of half the goods to a Firm B in Chennai, Tamil Nadu. The Firm B is willing to provide C Form against the sale. I have the following questions:

  1. Can Firm A claim purchase in Bangalore, and make a sale to Firm B in Chennai without the goods entering Karnataka?
  2. In which case can it also make a sale against C form from Chennai to Chennai?
  3. Does this kind of sale have to e supported with Form E1 or E2?

Kindly help me out as the goods are already in high seas.

Regards

Replies (4)

Answer 1 

If firm A is having an office at chennai then it would be considered as an import by the Firm A but of chennai office else it would be considered as an import by Firm A of Bangalore office .

Answer 2

If firm A is having an office at chennai and half of the sales are made at chennai then it would be local sales else if there is no office then it can make sales against C FORM. 

No C FORM sales cannot be made for sales made from chennai to chennai

Answer 3

No such type of sales does not require to be supported it with E1 or E2

 

Ok....

  Mr Priamrules,

  It will not be a highsea sale or sale in the course of import,because to sell half of the consignment the importer has to receive the goods himself bifurcate it and then sell it.No exemption will be available for such a sale. It will be an interstate sale chargeable with CST as per rules. Though sold at Chennai itself it does not matter......MJK

Dear All,

I have a question related to interstate sales of imported goods. Our Firm X is in Palanjur, Tamilnadu (which is exempted from tax) is importing goods which are cleared at West Bengal Port. We have to make a sale of the goods to a Firm Y in Guwahati, Assam. I have the following question:

Can Firm X claim purchase in Tamilnadu and send the goods directly to Guwahati with dcouments (Invoice, DC, JJ Form) , and make a sale to Firm Y in Guwahati without the goods entering Tamilnadu?  Does this kind of sale have to e supported with Form E1 or E2? Kindly help me out .

 

Regards

 

Dear Sridevi,

Such sale to Firm Y in Guwahati cannot be supported with Form E1 or E2 since E1/E2 sales involves three parties. 

 

What i could suggest is to make a sale directly by delivering the goods to the Firm Y in Guwahati. Such a sale would be called as Sales in the course of Import. However, necessary documents are required for proving the claim of "SALES IN THE COURSE OF IMPORT"

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