Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

E1 Sale Procedure

P.R. Bhupal Reddy (Manager Finance & Accounts) (73 Points)

19 February 2011

Dear Seniors,

A is the Material Suplier in Mumbai (Maharastra)

B is the Buyer / Dealer in Hderabad (A.P, Hyderabad)

C Customor / Dealer in Hyderabad (A.P, Hyderabad)

My Question is:

Is the below transaction "Sale In Transit / E1 Transaction" or not ?.

B purchases the material from A under CST biling and B prepare a Invoice without any tax amount to C.

the material A Delivers in the name of B and B Endorse the L.R.in the name of C. so, material collects by C

and A issues "E1" form to B and collects Form"C" from B and B collect Form "C" from C

Please guide me.

Regards,

Bhupal Reddy

Reply
Follow
Share

13 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 19 February 2011

Yes it is E-1 Transaction A have to issue E1 to C and B have to issue C form to A.

Upgrade to CAclubindia Pro. Subscribe Now!

P.R. Bhupal Reddy (Manager Finance & Accounts) (73 Points)
Replied 21 February 2011

Thanks for answering my question

Dear sir, can i get any law reference in internet for the above transaction

Please help..

Nitin Grover (CS) (1228 Points)
Replied 23 February 2011

Dear Friends

in my views E1 introduce only when if 3 states are included i.e Mr. A supplier from Delhi Mr. B Buyer from Haryana Mr. C buy from mr B and take goods directly from Mr. A is from UP then E1 & E2 will be introduced

coreect me if i am wrong.

Regards

P.R. Bhupal Reddy (Manager Finance & Accounts) (73 Points)
Replied 25 February 2011

Dear Seniors,

I need more informaiton on my doubt.

Please help me

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 27 February 2011

Originally posted by : P.R.Bhupal Reddy
	Dear Seniors, A is the Material Suplier in Mumbai (Maharastra) - will receive C form ....from B and will issue form E1 B is the Buyer / Dealer in Hderabad (A.P, Hyderabad) - will issue form C to A, endorse the LR in favor of C , collect form C from C, will not add any tax or value in invoice, C Customor / Dealer in Hyderabad (A.P, Hyderabad) - will issue form C to B, will receive the goods at the value cleared from A, through B My Question is: Is the below transaction "Sale In Transit / E1 Transaction" or not ?. - its purely E1 transaction, just have to maintain caution that nowhere A can issue any document in favor of C, C comes in picture only after issue of TR. B purchases the material from A under CST biling and B prepare a Invoice without any tax amount to C. the material A Delivers in the name of B and B Endorse the L.R.in the name of C. so, material collects by C and A issues "E1" form to B and collects Form"C" from B and B collect Form "C" from C Please guide me. Regards, Bhupal Reddy

Upgrade to CAclubindia Pro. Subscribe Now!

Ashish Sharma (FINANCE) (22 Points)
Replied 07 July 2011

Hi Friends, I want help regarding E-1 Sales Transactions.

If there are more than 1 transaction of E-1 Sale with same customer can we raise single invoice for the month to our customer for E-1 Sales??? Is this acceptable by department???

Sanjeev Nagal (Self) (22 Points)
Replied 05 November 2011

Dear sir,

As above subject i want to understand that A is the Material Supplier in Mumbai (Maharashra) can print on his invoice (A material Supplier) to B, C Customer / Dealer in Hyderabad.

Is it also understood as E1 Transaction and claim as exempted from Hyderabad VAT Act

Is it planing before E1 Transaction and Tax penalty or tax charged as Hyderabad VAT Act.