Vat & cst

Mahesh Kakade (Querist) 05 January 2012 This query is : Resolved
What is commercial benefit to enroll the VAT & CST registration in different state in India under one ownership?

1. Company is under Project business (ESP)
2. The company’s current turnover is 5crs, may increase to 20 to 50crs in this FY.

Also tell the E1 & E2 transaction rules and procedure to mitigate with statutory compliance.

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R K JAIN (Expert) 05 January 2012
Every dealer is to be registered in the State where he is doing the business. E-1 & E2 transcation is related to the sale while the goods are in transit. This sale can not be affected after taking the delivery of goods from the seller. Sellers will issue E1 form and the purchaser will issue the C Form. For example A sale the goods from Delhi to Punjab and Punjab dealer further sale the same goods while in transit to the delaer registered at Himachal pradesh. All the three dealers must be registered. Delhi dealer will issue E1 form to punjab dealer and punjab dealer issue C Form to Delhi delaer and Himachal dealer will issue C form to Punjab dealer.

Raj Kumar Makkad (Expert) 05 January 2012
As you are engaged in the commercial activity so it shall be better to avail the specific service of legal expert on this matter rather posting it on the public platform.