E-1 sale

Others 565 views 1 replies

Dear Sir,

If first sale is central and second sale is local is it E-1 transaction or not or if it is E-1 transaction than buyer can raise VAT Bill to consignee or not and collect C form consignee.

 

Regards

Rakesh Juyal

Replies (1)

   This can be an E1 sale. Let three traders say :A B & C are doing it. A & B are in different states. A&C are in the same state.A sells some goods to B by issuing an invoice and sends to transporter.But B sells to C,who is in the same state of A,again rising a CST sale invoice.Both are CST sales only.To make it E1 sale,C form is to be issued by C to B and by B to A.A can charge 2% CST in his invoice.B need not charge any CST in his bill to C.A has to give an E1 form to B.Only the transporter has to be advised to deliver the goods to C. There should not be a direct dispatch to C by A,which becomes a local delivery and local sale,attracting full rate of VAT.......mjk


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