Dear Sir,
Sub :- Clarification regarding E-1 sales.
Example - 1. X (Purchaser) who was staying in Karnataka was palced an order on Y (Seller who was also staying in Karnataka) to supply materials worth Rs.1000/- (i.e. Basic rate of Rs.1000/- and Excise and VAT extra at applicable rates.)
2. Where as Mr. Y (Seller) procurred materials from Mr. Z (Manufacturer / Dealer/Importer) who was staying in other than Karnataka and directly arranged delivery of material to X by making him as consignee.
3. Then Mr. Y raised Tax invoice on Mr. X as bellow along with excise invoice issued by Mr. Z. (Purchaser is Y and consignee is X)
Basic Rate 1000.00
Excise 123.60 (Reimbursement as per Excise invoice issued by Mr.Z)
Vat 14.5% 162.90 (As per purchase order issued by Mr. X)
Total. 1286.50
Questions :- 1) Whether the above said transaction is considered as E-1 sale ?
2) If Yes is it compulsary to mention as E-1 sale on the Tax invocie issued by Mr. Y.
3) Is the VAT charged in Tax invoice is correct or he has to get reimbursement of CST charged by Mr.Z to Mr. Y (Like excise).
4) Whether LR (Lorry receipt) copy issued by Mr.Z is to be certified by Mr. Y ?
5) Is Mr. Y has to raise Tax invoice by clubing all the amount in single line item. (i.e. 1286.50) or he may show as detailed as above.
which is the correct billing format.
6) On what basis a sale is considered / treated as E-1 sales.
Plse advise in the matter.
Thank U.
Ishwar.
CAclubindia
