Originally posted by : T.Ram Mohan |
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Dear Sir / Madam,
We are manufacturers in Chennai and our contract is to supply excisable material to Mumbai Company. But Mumbai Company has requested us to supply the material to a Company in Rajasthan under E-1 transaction after charging CST @ 2 %. Now my point is
1) Should we quote as E-1 transaction in our invoices.
2) Who will give us "C" form and to whom should we give "E1" form.
Pls Clarify.
T.Ram Mohan, Chennai |
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recent developments in E-1 transactions are making it troublesome to the dealers,
1) if you mention anywhere in your records including the transport documents the name and address of subsequent buyer o.e rajasthan party , then it would be rejected at the time of issue of forms / assessment
2) E-1 transactions take effect only after the goods are despatched by the 1st party ( manufacturer) and are on the way, the buyer ( 2nd party) endorse the transport documents in favor of 3rd party and ask transporter to route the goods to ultimate buyer.
3) party 2 will issue C form to party 1 and ask for E-1 form from party 1, on which strength the party 2 will issue invoice to party 3 without adding any value or tax.
4) you can not mention on invoice regarding E-1,
5) if the sales are subject to E-1 then u have to consign the goods to rajasthan as consignee and consignor "self" and endorse the truck receipt in favor of 2nd party ( mumbai) who will receive the document and re-endorse the transport document in favor of 3rd party ( rajasthan)
caution has to be mentained that 1st party is never familier with 3rd party but 2nd party makes sales to 3rd party only after the goods are despatched and on the transit.