Interested to Buy Any Domain ? << Click Here >> for more details...
What is "E1 Form" ? what are the types in that? why it is used?
- 1 Answers
- 4156 Views
- I also Faced
- E-Mail Answers
Answer Posted / abhivirthi tax and industrial
An inter-State sale or inter-State purchase which is effected
by transfer of document of title to the goods during their
movement from one State to Another is called sale in transit.
In the course of inter-State trade or commerce goods may
move from State to State. To save handling charges, the
traders may resort to sale by transfer of documents of title
during the course of inter-State movement of goods as laid
down in Section 3(b). They may save handling charges, but
they have to pay tax every time a sale is made which will
result in price hike and in order to prevent price hike Section
6(2) has been designed to prevent cascading effect.
An inter-State sale or inter-State purchase which is effected
by transfer of document of title to the goods during their
movement from one State to Another is called "Sale in
Transit".
In simple:
The dealer who effects first interstate sale under Section 3(a)
must issue Form E I to the buyer and charge Central Sales Tax
at concessional rate and get C Form. (First seller has to issue
E I Form to the buyer and obtain C form from the buyer)
In case where the registered dealer purchases goods from
one registered inter-state dealer and sells the same while in
transit, to another registered inter-state dealer, the sales will
be exempted from CST on submission of “Form E-II” to the
Department.
The dealers who effects subsequent sales must issue Form E
II to the subsequent buyers and also issue Form C to the
sellers from whom the goods were purchased under Section
3(b) and the subsequent seller gets CST exemption. (Second
and subsequent sellers has to issue E II Form). The
subsequent sellers should not handle the goods physically and
if the goods were handled physically subsequent transfer will
not be made. (Subsequent seller has to issue E II Form to the
buyer and obtain C form from the subsequent buyer)
When the goods were taken delivery or physically handled the
movement of goods comes to an end and such dealer or
person will be treated as final buyer and hence the final buyer
must issue C form to the last seller to him as the transit chain
breaks and the cost of the goods will be the Cost of the goods
+ Central Sales Tax (Concessional rate).
Form E-II is used for claiming the exemption from payment of
CST.
Reply from:
ABHIVIRTHI Tax and Industrial Consultancy
R.R.JAGADEESAN
VAT Practitioner and Industrial Consultant
H-63, Palaami Enclave
New Natham Road
Madurai-625014
Cell: 9994990599
| Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
WHAT IS TDS?SHOULD WE FILE TDS TO PURCHASE A THING .SHOULD WE PAY BOTH TDS &TCS FOR THE SAME THING
What is Vat and how it is adjustable with input vat and what return form required for DVAT?
If concern supply garments from outside purchase to movie producer for their production then is it maintain Service Tax if yes then how and at first what steps I have to take?
What is meant by Cost of Improvement?
What is calculate of tds
if salary paid per month Rs 80000/ I will deduct TDS from his salary, please what I do explain.(send Urgently)
what is the percentage of W.C.T T.D.S to deduct from vendor, and is this includes T.D.S deduction or again T.D.S has to deduct separately?
Explain deferred tax asset?
Our Company dedduct TDS on the collection charge and claim (rate diff claim, scheme claim, collection charge means , if any party take material directly form our store our company give them frieght charge and deduct tds@10.30%). my question in what category of this type of TDS decution ? is it payment to contractor or what ?
A person somehow gets hold of an extraordinary rare bird, keeps it as a pet for two years and then sells it off. Will related profit be taxable as capital gain?
what is WCT rate in chhattisgarh
what is the percentage of vat like 4 % , 12.5 % etc ? how can do closing stock valuation ?
In India for various goods supplied Excise duties applied by suppliers on goods? How to check this.. Is there any website in
Under the provisions of the BST Act, no registered dealer is allowed to collect any amount by way of tax in excess of the amount of tax payable by him. Excess tax collected is to be forfeited to Government. However i want to know whether tax payable amount is the amount before the set off claimed or the tax payable amount after availing the set off.
if waybill issued by consignor , then c form issue whose responsibility?
