12 September 2009
A of Kolkata purchases goods from B of Mumbai. While the goods were in transit, A sales the goods to C of Kolkata as E-1 transaction. A and B are registered where as C is not registered and C cannot issue C form.
Q: 1) Whether such sale will be treated as E-1 sale? 2) Whether A can claim CST at Full rate from C? 3) CST to be charged where first sale is effected. Whether A is correct in charging CST at Kolkata? 3) Whether A can issue C form to B and deposit extra CST collected at Kolkata commercial tax dept?
14 September 2009
1. Subsequent sale by transfer of documents are exempted from CST if subsequent sale is made i)Government & ii) to a registered dealer other then the ........ ; as subsequent dealer C is not registered A will have to charge tax from C. He cannot make E-1 sale to C. Also simple thing is that E-1 will not available to C as he is unregisted.
2. Yes, A must collect tax form C as he is not registered under CST. At full rate.
3. As the transaction is convered as sale in transit incourse of interstate trade A can charge CST to C
4. A can issue C-Form to B. Regarding CST on sales to 'C' there is no concession available to seller for sale made to dealer not registered under CST. He has to pay full tax
14 September 2009
1. No, for transit sales all involved parties should be registered. 2. YES, 3. Now, its a second sales w/o taking delivery of goods. 4. without any doublt 1st transaction between "A" & "B" covered under CST and "A" rightly can issue form "C" to "B" and liable to pay CST @ full rate of tax charged on sales made to "C"
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