E-1, C-Form

[chandramohan prasad]

We have sold goods under E-1 transaction. We have received E-1 Form from manufacturer. But we have not received C-Form for such transaction as party has been defaulter even payment is also unpaid. We have file case against such party.

Now, whether VAT department will charged full rate of tax in the absence of C-Form ? If its happen we will be financially hammered. What can we do ?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is likely the Department may charge full rate of tax.

[Ganeshan Kalyani]

You may present documenrard evidence to prove the fact. It can be said that form c is a proof of the transaction by which no other proof is required to justify the fact. Now that you don't have form c, you may attempt to prove the nature of the transaction with other documents.

AI Summary

Absence of C-Form may trigger full-rate VAT assessment unless alternative documentary proof of inter-state sale is produced. Absence of a C-Form for an E-1 transaction exposes the seller to likely assessment at the full rate of tax because concessional inter-state treatment hinges on receipt of C-Form; when C-Form is unavailable the seller should compile and present all available documentary and circumstantial evidence to prove the nature of the inter-state sale and contest any denial of concessional treatment, noting that litigation against the purchaser does not replace the statutory form.