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

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.