VAT or CST Purchase

[rajnish Paul]

M is a manufacture in west Bengal

A is dealer in Jharkhand

B is dealer in West Bengal

C an unregistered dealer in west Bengal wants to purchase from A in Jharkhand because he gets it a cheaper price.

 

Is an an E1 or E2 transaction. Please explain.

 

AI Summary

Unregistered Dealers Can't Use C Form: Full Tax Rate Applies in E1 or E2 Transactions M, a manufacturer in West Bengal, and A, a dealer in Jharkhand, are involved in a transaction query. B, a dealer in West Bengal, and C, an unregistered dealer in West Bengal, are also involved. C wants to purchase goods from A due to lower prices. The question is whether this is an E1 or E2 transaction. The response clarifies that unregistered dealers like C cannot purchase goods against a C form, and the full rate of tax will apply.