E1 & e2 form

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Sirs

X is the Material Suplier in Pune (Maharastra)
Y is the Buyer / Dealer in Kerala
Z is Customor / Dealer in Kerala
My Question is:
Is the below transaction "Sale In Transit / E1 Transaction" or not ?.

Y purchases the material from X under CST biling and Y prepare a Invoice without any tax amount to Z.
X Delivers in the name of Y and without taking delivery of material, Y Endorse the L.R.in the name of C. At last material taken delivery by Z from transporter.

Pls advise which statutory forms to be issued by X,Y & Z to each other.

Thanks

Rajeev

ASHEESH KUMAR

ASHEESH KUMAR (Expert)
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12 December 2013 Dear Mr. Rajeev,

Yes, This transaction belongs to Sale Against Form-E1/C i.e. in-transit.

Form-C will be issued by Y to X & Z to Y respectively.
Y will send the copy of Form-C received with Z along with endorsed bilty, his sale invoice with a request letter to X.
X will then issue a Form-E1 to Y.

Then this transaction completes...
Hope, your query is solved...

Asheesh Kumar

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Sir

Thanks for the quick response.

But now Z asking Form E2 from Y. pls advise.

Thanks

Rajeev

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ASHEESH KUMAR

ASHEESH KUMAR (Expert)
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12 December 2013 Dear Rajeev,

Z is right at its point. Y will have to issue Form-E2 to Z.

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Sir

In this Sale Z is the end customer .As Z is not selling the material to any body so they do not need to prove tax exemption before the Tax authority.So Why E2? Pls advise...

Thanks

Rajeev

ASHEESH KUMAR

ASHEESH KUMAR (Expert)
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12 December 2013 Dear Rajeev,

If Z will get Form-E2 when he is a dealer, not a customer i.e. end-user.

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Sir

Y has raised E1 sale Invoice to Z. For availing Tax Exemption X issues Form E1 to Y.
But Z takes delivery of goods for their own use .Then the transaction completes there. Z is not selling(not raising E2 Invoice )the Goods. Pls look in to the matter thoroughly and advise

Thanks

Rajeev

ASHEESH KUMAR

ASHEESH KUMAR (Expert)
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12 December 2013 Dear Rajeev,

As Z is end user so there is no need of Form-E2 in this transaction.

Suppose If in your example, Z sells to A & A take the final delivery. Then there is a use of Form-E2 which will be issued by Y to Z.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Sir

Thanks