A is the Material Manufacturer in Jabbalpur CG
B is the Dealer in Noida, UP
C Customor/Consignee Shajanpur, UP
My Question is:
Is the below transaction "Sale In Transit / E1 Transaction" or not ?.
B purchases the material from A under CST biling and B prepare a Invoice without any tax amount to C.
the material A Delivers in the name of B as a buyer & directly send to C and B Endorse the L.R.in the name of C. so, material collects by C
and A issues "E1" form to B and collects Form"C" from B and B collect Form "C" from C & issues E2 Form to C
Please guide me.
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The Transaction clearly covers under section 6(2) of the CST Act,1956 ,i.e subsequent sale and required forms are E1 & E2. Please get it confirmed that while raising Invoice by M/s A for such sale, the name of M/s B has been stated as Buyer and the name of M/s C is stated as Consignee and since there is inter state movement the same is covered under the said section.
"E1" refers to sales in transit . i.e., the sale is effect ed to a buyer who has ordered with another buyer, for whom the the material transhipment us under way.
Dear Mr. Burman,
If Goods destination ends at C-UP then no question of issuing E-II. If the Goods are attracting further movement then the question of E-II comes and B has to issue E-II.
Please correct me if am wrong.
Thanks for your reply.
But my question is that how to I will do billing to C. We (B) & C we are in same state. I will put any tax in our invoice or only charge as per our order value (Manufacturer Value + our profit)
Please help my.
Thanks & Regards
You may have to raise Commercial Invoice / Bill in Transit adding Value + profit, you have to show Actual CST charged by A
Dear Mr. Burman
How much amount of C form will be issued by C to B.
A invoice to B for Rs.102/- including CST Rs.2
B Invoiced to C for Rs.120/- including CST Rs.2 as per A invoice.
Now tell me amount of Cst C form to be issued in format 1 or 2 given below
1) Amount Rs. 118/- + CST Rs.2/- = Total Value Rs.120/-
2) Amount Rs. 117.64/- + CST RS.2.36/- = Total Value Rs. 120/-
One More question added to question raised by Mr. Vinay Singh.
What will be tax liability on Rs. 18 ( i.e. Rs. 120-102).
Since B & C both are in UP Sale of Rs. 18 to be regarded as Loacal or Central (E1)
Thanks & Regards
Please reply our query.