Issuing of C FORM

[SURYAKANT MITHBAVKAR]

We have received material from our local dealer who is purchase the same material from manufacture who is situated at out of State under form 'C'. The manufacture issued invoice as buyer Name- Dealer and Consginee-

Ourselves. Now Dealer has issued us his invoice for the same transaction and charging us C.S.T. @2% on their selling price under C form whereas dealer is situated in our state how he can ask for C Form from us.

Secondly the above case who is liable to issue C Form to Manufacture.

[YAGAY andSUN]

It seems that this transaction has been effected as transit sale under E-1 transaction. In this scenario you would have to issue C form to your supplier situated within you state and your supplier will issue form E-1 to it's supplier.

Please check whether you had issued PO for purchase of goods under E-1 transaction or not? Whether documents of title has been endorsed according the provision of CST Act or not?

AI Summary

Transit sale requires the consignee to issue C form to the in state supplier while suppliers issue transit forms upstream. The document treats the facts as a transit sale under an E-1 transaction: the consignee/purchaser must issue Form C to its in-state supplier, and that supplier in turn must issue form E-1 to its supplier upstream. It advises checking whether the purchase order recorded an E-1 transaction and whether documents of title were endorsed as required under the Central Sales Tax framework.