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E1 sales procedure

Nikhil Jain (Co Owner) (55 Points)

28 March 2012

Dear All,

I am aware of the E1 Transaction procedure but I have some confusion regarding taxation and forms to be issued/received if purchase and sale is made in same state but concern is registered in another state. For Eg. If I am registered trader in Chhatisgarh but I want to purchase good from Maharashtra and Sell in Maharashtra itself. Kindly guide me the procedure.

Also if any one is aware of procedure of LR sale in which LR is endorsed, please guide me the procedure and details.

Thanks in Anticipation,

Nikhil Jain.

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9 Replies

VIKAS KAPOOR (FINANCE PROFESSIONAL) (62 Points)
Replied 31 March 2012

Dear Nikhil

In SAle in transit / E-1, the main points to be noted is as under.

1) Goods Physicaly Moves from One State to Another State.

2) Origin & Destination place can not be in the same state.

3) End customer will provide the C form to his seller ( to you ) , Buyer ( dealer as you ) will provide the C form to Consignor & then Consignor will give you the E-1 form .

Refer to query on LR sales, in E-1 sales LR has to endorsed on the back side in favor of end customer .

For details , pls find the attach file....

Regards............VIKAS KAPOOR

Attached File : 260482 957453 e i transaction process note and documentation.rar downloaded: 2820 times

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Kedarnath Nayak (Accounts Officer) (33 Points)
Replied 29 June 2012

Our company ORICLEAN is in Orissa & placed an Order with ADI DURGA which is also in Orissa

Now ADI DURGA purchased it from Delhi & delivered it directly to us on E1 transaction & did not charged any tax.

Now ADI DURGA is asking us C form. My question is how can I issue C form to ADI DURGA as it is also within same state (i.e Orissa) & also to issue C Form online it requires Way Bill no consignment note no.etc.

Can anybody explain me how can I issue e C form to a supplier which is within the same state under E1 transaction. Whether Comm tax deptt will approve the "C" form or not.

VIKAS KAPOOR (FINANCE PROFESSIONAL) (62 Points)
Replied 30 June 2012

yes u can issue the C form to Supplier located in same state. U have to treat the subject purchase as Central Purchase & will submit in Return as Central Purchase agn Form-C. . When u will provide the data as CST Purchase in Ur Returns , then there will not be any problem to get the C form ( whether online or From Dept.)

Rgds.....VIKAS KAPOOR ( vickykapoor20 @ yahoo.com)

Pradeep Dalai (Others) (21 Points)
Replied 06 July 2015

We are distributor of Prawn Medicine in Odisha. We purchase these Medicine from a Manufacturer in Hyderabad and sale these medicines to dealers in Odisha. Dealers sales these to Farmers.

Can these transation possible in E1 Sale?

A (Manufacturer), Hyderbad

Sale to B: 100 + 2 = 102/- , (CST 2% agasint Form C, E1 Sale)

Buyer : B in Odisha, Consignee - C in Odisha

B (Distributor, Regd), Odisha

Issue C form to A

Billed to C: 110+2 =112/- (Reimburshment of CST)

Return : 2/-

C (Dealer, Regd), Odisha

Issue C Form to B

Sale to D (Farmer) : 110+13.75=123.75 (12.5% VAT Sale)

Return: 13.75/-

Whether the above transation is right or wrong?

samir ghosh (Professional) (24 Points)
Replied 29 December 2015

Dealer of West Bengal Purchased from West Bengal but delivered by the seller directly to the party in Odisha what forms to be issued to whom please specify.

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MOHANA KUMARA K G (Article assistant) (2 Points)
Replied 20 May 2016

Dear all

I have confusion about E1 Transaction.

If A Ltd & B Ltd are the companies of Karnataka. And C Ltd is company of Andra Pradesh. Now A Ltd bought goods from B Ltd and directed them to delivery the same to C Ltd Andra Pradesh. So how much tax should be charged from B Ltd to A Ltd.

Please guide me about it.