Understanding of form c, e1 & e2
surajp21
(Querist) 07 September 2013
This query is : Resolved
Dear Sir / Madam,
I request you to clarify on Form C, E1 & E2 under MVAT based on following sample transaction.
There are 4 parties. Mr. A from Maharashtra, Mr. B from Maharashtra, Mr. C from Delhi and Mr. D from Andhra Pradesh.
Here Mr. A sells goods to Mr. B who in turn sells goods to Mr. C and Mr. C in turn sells the goods to ultimate buyer Mr. D.
But actually the goods are delivered by Mr. A from Maharashtra to Mr. D, Andhra Pradesh directly.
My queries are as follows:
1) Whether is this ‘in-transit’ transaction covered under section 6(2)?
2) Which forms will be exchanged between all the four parties?
3) Transactions between whom will be exempt from tax and which are taxable to CST?
4) Who will ultimately pay tax to the Govt?
5) In the Subsequent transactions, how CST effect will be shown in the bill?
Regards,
Suraj
R.K Nanda
(Expert) 08 September 2013
contact tax lawyer.
Anirudh
(Expert) 08 September 2013
The first transaction between A and B are not inter-state transactions. The movement of goods from one state to another did not take place on account of sale between A and B.
However, the sale from B to C is inter-state transaction and B has to get the Form-C from C at Delhi.
Since the goods would be destined to Delhi, the question of the same getting sold to D at Andhra "during transit" simply does not arise.
