VAT E1 Form

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Nehal A.Sejpal

Service

61 Points Posted on 20 August 2009

Dear All,

I have one query please gove me answer on urgent basis.

I purchased one machinery in Nov-08. For that i was suppossed to issue C Form but due to some reason i am unable to issue the same. I purchased from Mumbai dealer & he purchased the same from Chennai based ESAB comany. Comapny deliver directly to my work area. LR is in my cos name. Now i called Mumbai based dealer that i am unable to issue C form. He demanded 12.5% VAT with interest that i am ready to pay.But i asked dealer that i will deduct 2% CST which i was paid originally. But he refused & told me that i already paid that 2% to govt. & for your benefit only i sale in E1. SO now what i have to do whether i have to pay full 12.50% or 12.5% less amt .alraedy paid for CST i.e. 2%.

Thanks in advance.

Replies (2)

RAJU

LEARNER

1089 Points Posted on 20 August 2009

Dear Nehal,

You need to pay only difference amount that is 10.5%. The department in Mumbai would levy tax at 12.5% if Form-C is not filed. However, they will also consider CST of 2% already paid by him. Hence, you need to pay only difference amount to match to total rate of 12.5%.

Please also ensure that the machinery sold by him is liable for tax at 12.5% and not 4% in which case you need to pay only 2%.

Regards/Dharmaraju