Vat return
This query is : Resolved
02 February 2013
respected to all of you,
can you please provide the information regarding the forms under VAT which are as
C form
H form
I form
E1 and E2 form
please explain it when they are required with example if possible
can you please provide the information regarding the forms under VAT which are as
C form
H form
I form
E1 and E2 form
please explain it when they are required with example if possible
04 February 2013
C Form - Issued (in original & duplicate) in case of inter-state purchase, by purchaser to seller so that the goods can be purchased at sales tax @ 2%, irrespective of the rates applicable to the State from which goods are purchased.
H form - Issued by Exporter to seller that the goods being purchased shall be used for fulfilling a certain export order. In such case no sales tax is charged by seller.
H form - Issued by Exporter to seller that the goods being purchased shall be used for fulfilling a certain export order. In such case no sales tax is charged by seller.
04 February 2013
I Form - Issued by purchaser in SEZ ares to seller for making inter state purchase at nil rate of sales tax.
E-1, E-2 - these forms can be best explained by the following example-
Form E-1-
A trader Mr Gupta at Punjab wants to buy some machinery, he contacted machinery expert Mr Mehmood of Delhi, now Mr Mehmood cant find that machine in Delhi, but he has a freind Mr Satpaal of Kolkata who manufactures that machine.
So in this case Mr Mehmood of Delhi will ask Mr Satpaal of Kolkata to sell it to him, but deliver it to Mr Gupta at Punjab. And Mr Mehmood will receive an invoice from Mr Satpaal (with his name as buyer and Mr Gupta's name as consignee). The goods will go directly to Mr Gupta at Punjab, however he will be billed by Mr Mehmood (with Mr Mehmoods profit of course). BUT MR MEHMOOD WILL NOT ADD ANY SALES TAX ON HIS BILL TO MR GUPTA. and this is the interesting part, that since goods have been taxed at 4% (assumed) at source from Mr Satpaal of Kolkata they will not be further charged any tax. This will save tax to Mr Gupta of Punjab from being taxed at Delhi
Now comes the forms part. In this example Mr Gupta of Punjab will issue a C Form to Mr Mehmood of Delhi, and Mr Mehmood to Mr Satpaal, AND MR SATPAAL WILL ISSUE AN E-1 FORM TO MR Mehmood of Delhi, thus completing the chain. And if this chain is broken at any point the party liable shall have to pay 10% as central sales tax.
Now same is the case with E-2 form, however there are more than 3 States / parties involved in this transaction. And the second stage seller (Mr Mehmood in above example) has to issue an E-2 form to the subsequent purchaser (Mr Gupta in above example)
E-1, E-2 - these forms can be best explained by the following example-
Form E-1-
A trader Mr Gupta at Punjab wants to buy some machinery, he contacted machinery expert Mr Mehmood of Delhi, now Mr Mehmood cant find that machine in Delhi, but he has a freind Mr Satpaal of Kolkata who manufactures that machine.
So in this case Mr Mehmood of Delhi will ask Mr Satpaal of Kolkata to sell it to him, but deliver it to Mr Gupta at Punjab. And Mr Mehmood will receive an invoice from Mr Satpaal (with his name as buyer and Mr Gupta's name as consignee). The goods will go directly to Mr Gupta at Punjab, however he will be billed by Mr Mehmood (with Mr Mehmoods profit of course). BUT MR MEHMOOD WILL NOT ADD ANY SALES TAX ON HIS BILL TO MR GUPTA. and this is the interesting part, that since goods have been taxed at 4% (assumed) at source from Mr Satpaal of Kolkata they will not be further charged any tax. This will save tax to Mr Gupta of Punjab from being taxed at Delhi
Now comes the forms part. In this example Mr Gupta of Punjab will issue a C Form to Mr Mehmood of Delhi, and Mr Mehmood to Mr Satpaal, AND MR SATPAAL WILL ISSUE AN E-1 FORM TO MR Mehmood of Delhi, thus completing the chain. And if this chain is broken at any point the party liable shall have to pay 10% as central sales tax.
Now same is the case with E-2 form, however there are more than 3 States / parties involved in this transaction. And the second stage seller (Mr Mehmood in above example) has to issue an E-2 form to the subsequent purchaser (Mr Gupta in above example)
04 February 2013
Thank you sir for this explanation
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