manish (officeer) 29 July 2013

Road permit

In State of Jharkhand there is system of e-road permit. In case both buyer and seller are registered dealer in Jharkhand and inter state sale u/s 6(2) of CST Act is being made. As far as I understand Road permit is to be given by buyer dealer. However the buyer is saying becasue of E-road permit and linking of same for issuane of "C" form by deparment,Buyer is willing to issue Road permit is in name of Seller instead of in name of person who is originally supplying the goods i.e. Seller's Seller . In such a situation the following may be replied

Road permit is to be given by Seller or Buyer .
In case buyer issues road permit in name of seller instead of ultimate supplier, what are the complications involved
What are the consequences (taxation impact) if seller issues his road permit to ultimate supplier instead of final buyer.

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3 Replies

binay (advocate) 29 July 2013

dear mr.manis,

i think ur a tax officer.

in odisha also the same thing occured.

what ever it may be the ultimate aim is to get tax. in every point of sale the govt. got sale tax and the ultimate buyer has to pay the tax for it. so they overtoke the process and the middel trader is going to be a consultant agent and got a payment without paying saletax. alwayes the process is not for mis-use but to got a very clear & easy trading. but they make it more easy for govt. to loose tax.

what do u think?

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 29 July 2013

e-Roads permits which are also called way bills are issued by the purchasing delears to selling dealers to bring the material inside some of the states e.g. VAT 65 in J & K , ST-38 Haryana , ST -31 in UP, VAT-47 in Rajasthan , FORM -50 in West Bengal , D IX in Bihar and so on. Whithout which the goods entering into the states liable for penalty under the resepective state laws .

mannu077 (Sr. Manager) 08 August 2013

What road permit is required for the state of Tripura ? I shall be purchasing some items from Delhi and like to bring it to Tripura, I have CST registration certificate and have filled Form C, given to the seller, now what road permit to be given ?