Student
51 Points
Joined May 2013
Originally posted by : ganesh raja |
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i am an importer at delhi and importing and selling my goods from Chennai port by issuing cst bill from delhi as i am registered with delhi. i want to know if the importered material can bo sold directly from the importing port to the customer available at importing state and avoid paying double tax as i issue bill from delhi under CST and again i am being forced to pay 5% vat by the TN CTO. |
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Mr. Ganesh,
You can adopt the rule of Sale Against Form-E1/C. Here, you will pay CST @ 2% or 1% Against Form-C (As per state law) against your purchase. Your consignment will be directly sent by your supplier to the party you want to sell i.e. Sale-in-transit. Now, you will raise the invoice to your party without charging VAT/CST. That party whether it's local dealer or outside state, will issue you a Form-C against that transaction. Now you will have to send the following documents to your supplier for getting Form-E1 issued. The Documents are:
- Copy of bilty endorsed by the party (Receipt against material confirmation)
- Copy of Sale Invoice raised by you against the transaction
- Copy of Form-C issued by Party to you.
- Copy of Form-C issued by you to Supplier.
Hope, your query is solved.