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.
Clarification on C Form Issuance in E-1 Transactions: Verify Purchase Orders and Endorsements per CST Act. A party inquired about a transaction involving the issuance of a C Form for materials received from a local dealer who purchased them from an out-of-state manufacturer. The dealer issued an invoice charging Central Sales Tax (CST) at 2%, despite being in the same state as the inquirer, raising questions about the legitimacy of requesting a C Form. The response clarified that this is a transit sale under an E-1 transaction, requiring the inquirer to issue a C Form to their supplier, who will then issue an E-1 form to the manufacturer. The responder advised verifying the purchase order and title document endorsements as per the CST Act provisions. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
