I have not done much RC purchases from India, so this one was news to me.  A few members contacted me about LHSes now insisting on Form 16s to be provided for shipping the items purchased, as the "courier companies are demanding it".

Is this true at all ? Do all courier companies demand this ?  Is there a value limit over which courier companies insist on this ?

Hopefully the members who asked me this question can follow this thread and get the answer.

The actual requirements vary from state to state, some states need Form 16 or other forms under their respective VAT laws for consignments above 3-5k. Other states don't need it. Some buyers need forms to import goods into their own state. Some need e forms. E.g.: E-Sugam in Karnataka. E.g. Kerala needs form 16 for all inbound shipments above Rs. 4999

It is necessary between b2b not for b2c, again there is a huge confusion due to differences between the state VAT jurisdictions. Until GST takes over, there will be such issues.

Hmm, I think you were not referring to Form 16, but Form C!?

Yes some states requires some forms.

One our Shipment to a customer in Uttarakhand state through First Flight couriers was ceased by Sales Tax authorities before a month and still it is not cleared by them. The reason was the shipment does not contain the following form which has to be obtained by the customer from the sales tax department.
the title of the form is "Application for Form of Certificate for Import"
http://comtax.uk.gov.in/upload/forms/Form-14.pdf

After this incident we have received few orders from different customers from Uttarakhand state and when we insisted for the form  the orders were cancelled.

This is just another way for palm greasing amongst officials, since those certificates etc. will all take a little bit of grease to procure.

Palm greasing happens for no good reason, so leaving that aside - importing to uttarkhand? which country are these chaps living in!? Poor citizens of our country! Hope GST is implemented in the right way and things in the right direction..

OMG!

I dont know should i say this on public forum or not but this is how i handle this.

If any of the shipments goes over 5K i under-declare the value which is less than 5K and this invoice is used for shipping/courier purpose and the actual invoice is added inside the box.

This will all end once GST is implemented...

agreed. however i doubt it will become cheaper after GST, since GST will be levied at 3 Levels. SGST, CGST, IGST,
These are just glorified names for VAT (State GST), CST/Excise (Central GST) , CST (Inter State GST) . Agreed, all entry taxes shall be removed, however the cost of goods will go up, since tax payable for inter-state sales shall be SGST + CGST.

X in Delhi Sells a good with a SPBT(Sales Price before tax) of Rs. 1000 to Y in Kanyakumari, assume the rates of SGST and CGST are both 15% each, then X will collect IGST= SGST + CGST , that is 15 % + 15%= 30%, i.e. Rs. 300. while the seller will be able to get credit for the same, the buyer bears the aditional 15% duty he/she has paid.

While currently only the Prevailing Rate of VAT is charged to CST. Pls. correct me if I am wrong

Hi Anwar,

Depends on the shipping company but this below link should clarify your doubts if any.....

https://www.bluedart.com/reg.pdf
http://images.fedex.com/downloads/in/domestic/Statutory-Levies-and-Paperwork-Requirements.pdf

Form 16 is a declaration that needs to downloaded upto Rs. 20000 etc pls see below link

http://www.keralataxes.gov.in/circular/CIR.3.15.pdf

Hope this helps you and also the place from where you have made the purchase.

Also regarding CI (Tax Invoice/Commercial Invoice) the seller needs to be registered with the Commericial Tax department (VAT), what generally is happening not many LHSes are registered with either or any govt departments they generally ask for money to be transfered to their personal bank accounts. Kindly note that its not directed at any LHS or persons.

Yes Inter State sales is still largely not clear for E-Commerce in India.

Also GST is PAN based so its going to ensure all those not registered or not paying the taxes when they claim their products are inclusive of Taxes will have to fall in place. GST will most probably be higher in Tax rate for sure.