Gaurang (Manufacturing) (85 Points)
22 October 2008Dear all,
I am purchasing goods, from a local party who is a trader. He subsequently purchases the goods from a banglore based party with CST. When local party issues me a bill, he does not charge the CST and writes as sale in transit.
In whose name the C form is to be issued?
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 22 October 2008
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If it is a case of sale in transit, then trader will not charged CST because it is a case of E1 sale.
What is E1 sale? Let take example, there are three parties A (seller outside state) , B(1st purchaser i.e., local party in your case), & C(final purchaser i.e., you).
When A sell the goods to B, A charge CST but during the transit B inform A about to sell it to C (who may be in same state or other) i.e., sale in transit.
In such case, B will issue C form with tax value to A, but B will not charge CST on sale to C, then C will issue the C Form to B with nil value and B will issue E1 Form to C. Originally posted by :CA Gaurang |
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| " | Dear all, I am purchasing goods, from a local party who is a trader. He subsequently purchases the goods from a banglore based party with CST. When local party issues me a bill, he does not charge the CST and writes as sale in transit. In whose name the C form is to be issued? |
" |
| Originally posted by :CA Gaurang | ||
| " | Dear all, I am purchasing goods, from a local party who is a trader. He subsequently purchases the goods from a banglore based party with CST. When local party issues me a bill, he does not charge the CST and writes as sale in transit. In whose name the C form is to be issued? |
" |
Dnyaneshwar
(service)
(22 Points)
Replied 24 October 2008
| Originally posted by :CA Gaurang | ||
| " | Dear all, I am purchasing goods, from a local party who is a trader. He subsequently purchases the goods from a banglore based party with CST. When local party issues me a bill, he does not charge the CST and writes as sale in transit. In whose name the C form is to be issued? |
" |
Declarations in E-I and E-II form - As per section 6(2) of CST Act, first Inter State sale is taxable. Subsequent sale during movement of goods by transfer of documents is exempt from tax, if the subsequent sale is to Government or a registered dealer. This is subject to condition that such subsequent seller obtains declaration (a) from the selling dealer i.e. from registered dealer from whom goods were purchased. (b) from purchaser a declaration in C form or declaration in D form. The selling dealer has to make declaration in E-I form if it is a first sale and in E-II form if it is a subsequent sale. One example will clarify the requirements. Assume that W despatches goods from Karnataka to Orissa and raises invoice on X in Madhya Pradesh, W charges 4% CST and pays the same in Karnataka. During movement of goods, X sells goods to Y in West Bengal and Y ultimately sells goods to Z in Orissa. Z takes delivery of goods and the ‘movement of goods’ comes to end. Sale from X to Y and Y to Z is by transfer of documents. In this case, W will receive declaration in ‘C’ form from X and will issue declaration in ‘E-I’ form to X. Later, X will issue declaration in ‘E-II’ form to Y and receive declaration in C form from Y. Finally, Y will issue declaration in E-II form to Z and will receive declaration in ‘C’ form from Z, which will complete the chain. If the chain is broken, CST will be payable again.
Some provisions of C form applicable to E-I/E-II forms - Following provisions of C form are also applicable in respect of E-I/E-II form (a) One declaration for all transactions in one year (b) Separate declaration for each financial year (c) Indemnity bond if form is lost (d) Issue of duplicate form (e) Submission at any time before assessment (f) Like C form, the E-I/E-II forms are mandatory and sales tax concession is not available if the required form is not submitted
venugopal.kaja
(Accountant)
(22 Points)
Replied 25 June 2009
Dear all,
We had a purchase transaction.In this transaction there are 4 Parties. we are purchased goods, from a local party who is a trader. He subsequently purchases the goods from a Maharastra based party (Seller) with CST and Deliver the goods from Maharastra to Our Customer in Local (Consignee) through transport.When local party issues me a bill, he does not charge the CST and writes as sale in transit.And he demands C form against Sale in transit.In whose name the C form is to be issued?
Venugopal
VARUN KAUSHIK
(ACCOUNTS )
(25 Points)
Replied 17 September 2009
Dear All
Greeting
we had made one transaction of central u/s 6 (2) of transit sale. In the transaction there are 5 parties involve. We are at 3rd stage, as per my knowledge C Form will be given by all party but
the E1 will be give by 1st party to 2nd party and
E2 will be given by 2nd party to 3rd party
my query is will we the 3rd party also issue the subsequent form or E2 form to 4th party or not ??
varun kaushik
SHAHNAWAZ KHAN
(ACCOUNTANT)
(28 Points)
Replied 17 November 2009
up c form issue which amount tax amouny or with out tax amount?
Rajesh Kumar
(Accountant)
(22 Points)
Replied 20 June 2013
| A ( J&K) purchases goods from B (Haryana) nut B purchases this material from C(Delhi). B supplied by E1 billing to A( J&K). C made Invoice in favour of B, but B cannot make bill in favour of A in same quarter and make bills after on year , can this E1 billing is success and B can issue C-form to C. Please tell us. | ||
SHYAMAL ROY
(ACCOUNTANT)
(21 Points)
Replied 10 April 2014
Mahhesh Kummar Aggrawal
(Attorney)
(21 Points)
Replied 28 February 2015
Dear All,
Can any one guide me ? If, transit sale is made to an end user, then, how we will show it ? We have purchased material from "A" from Chhattisgarh by charging CST @ 5% and sold it to "B" from Odisha. As we have already paid CST to "A", so, we should not charge the same to "B". I am confused, because, "B" is an end user and can not issue "C" form. How to make it E1 transaction? Please help.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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