Ramees (CA Final Student) (87 Points)
26 March 2013I am a dealer in tiles registered in kerala. My supplier is located in Secundarabad. I have made already an order for purchase to my Supplier for ceramic tiles to resale tottally to one my customer dealing in ceramic tiles in kerala.
Will it come under the purview of E-1 Sale U/s 6(2) of CST Act ?
Is it necessary to have three states to go with E-1 SALES?.
Shivani
(Learner)
(1881 Points)
Replied 27 March 2013
Yes it will come under E-1 provided you raise the invoice to your customer after your supplier has delivered goods to the transporter.
E-1 sale must take place during the movement of goods from one state to another and this movement starts from the moment your supplier gives the goods to the transporter.
An expert may confirm.
Shivani
Shivani
(Learner)
(1881 Points)
Replied 27 March 2013
You will get E1 form from your supplier.
You will give C form to your supplier.
Your supplier will charge you CST @ 2%.
You will issue E2 form to your buyer.
You will get C form from your buyer.
You will not charge any CST to your buyer.
An expert may confirm.
shivani
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 28 March 2013
Ms Shivani, & Ramees,
Adviice by Shivani is correct,but as it is only of a single transit sale there is nonecessity of EII form ....mjk
Ramees
(CA Final Student)
(87 Points)
Replied 29 March 2013
Thanks for the valuable replies... Please comment on the applicability of local VAT for me...
Shivani
(Learner)
(1881 Points)
Replied 29 March 2013
You will not charge any VAT to your buyer as this is not local sale (within Kerala).
I request MJ Krishnamurthy Sir to please confirm.
Shivani
Ramees
(CA Final Student)
(87 Points)
Replied 09 May 2013
Shivani Ma'am & Krishnamurthy Sir
I really appreciate your Valuable replies earlier...
I have some more questions..
You said I will receive C form from my customer...
So how will my customer show his purchase?
To enable him to give me C Form does he need to show it under Interstate Purchase?
Is it possible to issue Cform if the TIN of both seller and buyer is of the same state?
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 09 May 2013
Mr Ramees,Your customer has show his purchase as an interstate transaction,because it is a continued interstate sale. Therefore issue of 'C' form also to a supplier having TIN no of the same state would not matter.For any further verrification an E1 form issued by your interstate supplier can be produced as a proof.........mjk
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