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E1c transaction

bkramdasi (MBA) (131 Points)

01 January 2014

Dear Sir,

There are two transaction as below :

1]We & our Vendor are in same state & my customer is in different state. Can we supply material under E1C transaction?

2]We are in Maharashtra, customer is in Rajasthan, our Vendor is in Tamilnadu. Our customer can not give form C. Can our vendor dispatch material to our customer & bill on us with 2% CST against C form. And thereafter can we bill on our customer with full CST since he in not giving C form?

Please advice.

Thanks,

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1 Replies

B.N.Dharmendra (Senior Manager Indirect Taxation) (136 Points)
Replied 03 January 2014

For ur first Case :

Gist of E1 Sales :

Trader(A) (Supplier) should receive a Purchase Order from Buyer (C) (Consignee)

Mfr.(B) will issue Form-E1 to Trader(A) and collect the Form-C from him

Mfr.(B) will raise Invoice on Trader(A) and mention the Consignee as Buyer (C) as Dispatch Place(he must be interstate) ie. Goods movement must be interstate.

Trader(A) should endorse the LR/way bill in the name of his Buyer (C) Consignee or Goods once received by Consignee from the transporter is also proof to qualify for E1 Sale.