E1 AND E2 FORMS

[krishan sharma]

 DEAR SIR

 WHAT IS THE ROLE OF E1 AND E2 FORM IN THE CENTRAL SALE TRANSACTION

PLEASE EXPLAIN WITH GIVEN EXAMPLE

IF A DELHI TRADER  SALE TO MUMBAI  TRADER  AND MUMBAI TRADER SALER  SALE AGAIN SUCH GOODS TO UP TRADER

 SALE BY DELHI TRADER  RS             GOODS VALUE  RS 100000                  CST               2000

 SALE BY MUMBAI TRADER  RS             ADDING HIS PROFIT  RS 10000

 Q   1  MUMBAI TRADER ELIGIBLE FOR  AVAILING INPUT OF CST  ( IF NOT  THEN WHAT DO)

 Q 2  AMOUNT OF CST CHARGED BY MUMBAI TRADER  FROM  UP TRADER

Q 3   IF UP TRADER SALE THE SUCH GOODS TO HARYANA  TRADER  WHEN USE THE SAME PROCESSIOR ? YES OR NO

[r.rajkumar kumar]

FOR E1 AND E2 SUPPOSE YR IN TAMIL NADU TRADER Y GOT ORDER FROM MUMBAI AND YOU HAVE TO PURCHAE GOODS FROM DELHI, FROM TAMIL NADU Y HAVE TO PLANCE ORDER SELLER AT DEHI ON EN TRANSATION BASIS. WITH ALL BELOW CONDITIONS

1. ALL THREE INVOLVE IN THE TANSACTION MUST BE REGISTERED DELARES.

2.DELEAR FROM TN HAS TO GIVE P.O. TO DELHI TO SUPPLY GOODS ON E1 BASIS

3. GOODS WILL MOVE FROM DELHI TO TN ON THE WAY TN DELAR MUST ENDORSE THE GOOS

    TO MUMBAI WITH 0UT TAKING DELIVERY.

4..TN CAN RAISE BILL TO MUMBAI WITH OUT CST ON E1 BASIS .

5.TN MUST GIVE C  FORM TO DELHI AND MUMBAI HAS TO GIVE  E1  AND C FORM TO TN THE ORGINAL BUYER. .

THERE WILL BE ON CST AGAINST C FORM CHARGED BY DELHI THE ORGINAL SELLER.  

 

AI Summary

E1/E2 forms enable CST relief in inter state chain sales when registered parties exchange E1 and C forms. E1 and E2 forms enable CST treatment in inter state chain sales when all three parties are registered dealers: the intermediate places an E1 purchase order with the original seller, endorses goods in transit to the final buyer without taking delivery, bills the final buyer without CST on the E1 basis, and the final buyer must provide a C form to the original seller while E1 and C forms are exchanged among parties to secure the CST concession.