How is the Direct sale done?
Like "M" in Ghaziabad buys certain materials from Delhi on different dates from "A" AND "B" and gives to a third manufactrurer "H" in Delhi who manufactures the final product using those componenets supplied by "M". "M"does not bring those components in U.P but buys from "A" and "B" and gives to "H". I this process "M" pays CST2% + C-form to "A" AND CST 4% to "B".
Now "H" makes the final product and send the product directly to the final buyer "R"in Punjab on behalf of "M" through a transporter form DELHI.
Billing process:
1. "H" bills to "M" for the final product and charges CST @ 2%+ C-FORM.
2. "M" bills to "R" after adding his profit + CST @ 2% + C-FORM.
In this process "M" does not give road permit to either "A", "B" OR "H".
Will this process anywhere involeves E1 form? and is there any flaw in this process.?
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