E1 Purchase - Billing
Vinu Priya
(Querist) 18 January 2011
This query is : Resolved
We purchase fibre from Nagpur and sell within Tamilnadu through E1 Sales. What are the important proceddures (i.e, wordings) to be followed and to verify in billing during both purchase and selling.
AMIT BAJAJ ADVOCATE
(Expert) 19 January 2011
while making subsequent sales i.e sales u/s 3(b) of CST Act make sure that there is written endorsment on the GR/LR/RR in favour of the subsequent purchaser.
The first invoice should be in the name of original buyer only and there should be no mention of subsequent buyer in the first invoice. Seperate invoice should be raised in favour of subsequent buyer by the first buyer while endorcing the GR/LR/RR in his favour. Otherwise it may lead to conclusion that there was a predetermined contract of sales regarding the subsequent sales.
For more clarity on the subject you can refer the article at the following link:
http://amitbajajadvocate.blogspot.com/2010/12/understanding-e1-and-e2-sales-under-cst.html
H.M.Patnaik
(Expert) 20 January 2011
Yes. Very rightly explained.
Vinu Priya
(Querist) 28 January 2011
1. do the first invoice must contain a word as E1 Sale anywhere? Whether the delivery address in this invoice must be first buyers address or the subsequent buyer address?
2. Can the first buyer raise invoice to his subsequent buyer with his profit or the value should be the same as original invoice?
