LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

issue of Form E-I & E-II

22 August 2007

dear all

i have a question for Inter state sale. My company is buying material from himachal pradesh where cst is 1% agaist form 'c'. My company sales is oms like chennai, baroda.. There is double tax where i pay cst and also pay cst on sal. i am not able to get input credit.

1.My question is whether i can use E-I & E-II forms for the same transactions?

2. this is on regular basis/

3. the sale is already known before despatch of materials.

4. cst on what rate will charged as i also add my margin in sale.

5. what things i have to mention in invoice , in e form , in c form, entry tax?

pl guide me .

kirti

Reply
Follow
Share

9 Replies

Siddharth (Accountant) (13 Points)
Replied 24 August 2007

You can endorse on the back of the waybill/Railway receipt before you take delivery of goods and you have to issue C form to your supplier and collect E-1 form from the supplier and send it to your buyer and you have to get the form c from your buyer.

(Guest)

this is on regular basis/ 3. the sale is already known before despatch of materials. In some of the states especially like orissa, assessing authorities disallowed E-I if party name is mentioned as consignee in invoice copy, i think it is proper on their part because when one is already mentioning where to give delivery, writing self in LR is of no use, in this case the first sale is cst and second sale is local both. If in invoice 4. cst on what rate will charged as i also add my margin in sale. if consignee name/address is writen in invoice cst @ 4%, and local vat at applicable rate on your invoice value will have to be charged. 5. what things i have to mention in invoice , in e form , in c form, entry tax? If you what to claime it as e-i , you should raise invoice without mentioning cosignee details and form details, first party will raise invoice by charging 4% cst agst c form, 2nd party will endorse the LR and in first party's invoice copy will accompany goods, and after delivery they will raise invoice by giving reference of LR and First suppliers envoice anc will not charge CST and mention 6(2) sALE AGAST c FORM, FORM COLLECTION IS ALREADY MENTIONED BY sIDDARTHA. on delivery will be invoice also they will write "

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 11 December 2007

O.K. Let us continue the debate:- As per CST Act, Section-4 When is a sale or purchase of goods said to take place outside a State.- (1) Subject to the provisions contained in Section 3, when a sale or purchase of goods is determined in accordance with sub-section (2) to take place inside a State, such sale or purchase shall be deemed to have taken place outside all other States. (2) A sale or purchase of goods shall be deemed to take place inside a State, if the goods are within the State- (a) in the case of specific or ascertained goods, at the time the contract of sale is made; and (b) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to such appropriation. Explanation.-Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of this sub-section shall apply as if there were separate contracts in respect of the goods at each of such places. Now, if the goods are directly sent to other States from H.P., the sales should not fall under the ambit of taxation of the state (in which the dealer is registered), because this sale will be known as sales executed in out side the state. However, what will be the modus operandi or how the way bills et. will be utilised it is not clear to me.

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 11 December 2007

Expert opinions on the modus operndi for such sales solicted.

(Guest)

Dear Sir,

We have procured a DG SET . The party has made the sales invoice mentioning it as FORM C sale under E-1 Transaction. Now the party is asking for FORM-C and is insisting that FORM E-1 will be issued by him after receiving the FORM C.

Please advise us whether the FORM-C has to be issued after obtaining the FORM E-1 only or FORM-C needs to issued first and after that only we will be getting the FORM E-1

Thanking you