Amount for C form

[Kuldeep Nain]

Dear sir/madam

I want to know the amount taken for issuing C Form in case of E-1 Purchase.

1. The amount mentioned on invoice issued by Manufacturer including Excise and CST.

2. Amount mentioned on invoice issued by Dealer Including his profit.

[YAGAY andSUN]

C form shall be issued against the point no.1 only.

[Ganeshan Kalyani]

Sir, this is called 'sale in transit' transaction where the buyer of goods before taking delivery of the goods endorses the LR document to the ultimate buyer. The fisrt buyer has to issue Form C to the seller and the seller will have to issue Form EI to the first buyer for the amount of which the invoice is raised by the seller. Further the ultimate buyer will issue Form C to the fist buyer for the value of which invoice is raised by the first buyer which may include his profit/margin as well. The invoice amount on the invoice raised by seller may differ with the invoice amount raised by the first buyer on the ultimate buyer. The ultimate buyer will have to receive EII from the first buyer. Thanks.

[MUKUND THAKKAR]

perfectly explain by Sh. Ganeshan kalyaniji...

[Ganeshan Kalyani]

Thanks Sri Mukund Ji for your appreciation. Thanks.

[Kuldeep Nain]

Thank you Sir for your brilliant support

[Sarveshwar Mundra]

Shri Kalyaniji, your explanations are so elaborate and clear that my long term confusions in this type of particular transactions are now very much cleared. Thanks.

[Kuldeep Nain]

Respected Sir

But department is not accepting the value as per your view. As per Deptt. Seller Invoice value (Sale Price + Excise Duty +CST) will be the value which will be accepted to issue C form by US to First Buyer.

Please Guide.....................

AI Summary

Clarifying E-1 Purchase Transactions: C Form Should Reflect Manufacturer's Invoice Amount, Not Dealer's Profit Margin. A discussion on a forum addresses the correct amount for issuing a C Form in E-1 purchase transactions. The initial query asks whether the C Form should be issued based on the manufacturer's invoice amount, including excise and CST, or the dealer's invoice amount, including profit. Responses clarify that the C Form should be issued for the manufacturer's invoice amount. A detailed explanation describes the 'sale in transit' process, where the first buyer issues a C Form to the seller, and the ultimate buyer issues a C Form to the first buyer. Despite this, a participant notes that the department accepts the manufacturer's invoice value for issuing the C Form.