Sale Tax for E1/E2 Transaction

[Asked by Guest]

A trader has do  some sale transaction in E1/E2 to a MNC company, Due to default case MNC company has stop their Indian operation and company has closed. Main company has not provide any C form to Trader. So Now what will do the trader. Please give us your valuable suggestion.

 

Regards

[V K]

in absence of C Form, trader has to pay full tax liability. as at the time of Sale, he has availed the Full tax Benefit.

to complete the E-1 /E-2 sales, C-Form along with E-1 /2 form has to be submitted before sales tax dept.

Regards.. Vikas Kapoor 

[YAGAY and SUN]

Full rate of tax will be applicable in case of non submission of statutory declaration Form C under Cst Act, 1956 along with interest at applicable rate and department may impose penalty on you under section 10A of the Act.

AI Summary

Absence of C Form in E1/E2 transactions triggers full sales tax liability with interest and possible penalty.
Where a buyer ceases operations and does not furnish the statutory C Form, the trader must submit the C Form together with E1/E2 to the sales tax department; failure to do so results in full tax liability, interest at applicable rates, and potential departmental penalties for non submission of the statutory declaration.