E1 form applicable to vat

Mahavat 887 views 1 replies

Supplier & purchaser(1) is based in the same state & purchaser(1) want to sell material during transit to

Case 1 : purchaser(2) based in the same state

Case 2 : purchaser(2) based in another state

Can purchaser(1) use FORM E1? in which case or both cases.

What forms all three have to use? please explain in detail.

Replies (1)

Hi Yogesh,

According to me if supplier & Purchaser(1) are in the same state, then vat will be charged on the 1st transaction. Then when Purchaser (1) sells goods to Purchaser(2) in the same state then again there will be VAT since value is added & there willbe no E1 or E2 in this transaction.

If Purchaser(1) sells goods to Purchaser (2) in some other state, Purchaser(1) has to charge 2% CST & will have to receive C form from purchaser(2) & also purchaser (1) can give E1 form to Purchaser (2) if purchaser(2) is going to sale these goods to any other purchaser in any other state & in that transaction there wont be any CST.


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