What is form E-I & E-II ?
Answers were Sorted based on User's Feedback
Answer / 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 ? | 6 Yes | 0 No |
Answer / s rana
IF B BUY MATERIAL FORM A AND WITHOURGHT RECEIVING HE SALE
IT TO C AND C AGAIN SALE IT TO D INTRASIT THAT CASE A ISSUE
E- TO B AND GET C FORM AND B ISSUE E2 TO C AND GET C FORM
AND D ISSUE C FORM TO C.
Is This Answer Correct ? | 2 Yes | 0 No |
Answer / satpal nalavade
FORM E1 & E2 IS TRANSIT SALES DECLARATION FORM AGAINST FORM
C to Third Party Sales
Is This Answer Correct ? | 0 Yes | 1 No |
What is PLA Account & briefly say the central excise returns, due dates & entries
What are the criteria to avail lower deduction of TDS & why the lower TDS deduction certificate issued?
what is the rate of tds on interest payment and basic exemption limit for general insurance co.
What is Service Tax, what percentage it was deducted in shipping company.
What is deffered tax liability?
(1)what is last date of monthly TDS challan deposit (2) what is last date of TDS quarterly Return filling
32 Answers Advance Steel Tubes, Bombay Burmah Trading Corporation, First City, Kekran Mekran, SA Enterprises, Wipro,
how to calculate and submit to the concerned authority of pf,esi,pt. explaine?
what is F form E-I form and E-II form?
What is FBT? please guide me with the example
If a person got gold by wining a lottery and TDS on the gold value was not deducted by the deductor. After getting the gold, the person tranfer the gold to his daughter. After reading the provisions of the Income Tax Act, 1961, you are required to state that who is liable to pay the tax on the value of the gold? and is there any liability of the Deductor towards non-deduction of TDS?
is WCT applicable one time? and what will be rate of WCT in UP State?
I am getting a salary of 50000 Rs Net salary. After showing my rent bills and children school bills, still I am being deducted a TDS amount of 2000. Is there any chance of even avoiding this amount to be deducted by investing in any insurance. Please give me a suggestion.