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.

 

[YAGAY and SUN]

Unregistered dealers can't buy any goods against C form.  Full rate of Tax will be applicable.

AI Summary

Interstate sales compliance: unregistered dealers cannot use C form and regular tax must be charged.
An unregistered purchaser is ineligible to procure goods on concessional inter state documentation; a supplier selling interstate to an unregistered dealer cannot accept a C form and must charge tax at the regular full rate under VAT/CST rather than the concessional inter state rate.