The document provides information on various sales tax forms relevant for MRO activities at RIL, including Form C for inter-state purchases, Form F for inter-state stock transfers, and Form I for inter-state sales to SEZ customers. It also discusses standardizing inbound and outbound warehouse registers, early payment incentives (EPI) including projections and analysis, and deemed exports including advance authorization schemes and RIL's process for deemed export orders.

2. Report
 CST Forms relevant for MRO
 Standardizing Inbound and Outbound Registers at the warehouses
 Early Payment Incentive (EPI)
 Deemed Exports
By:
Abhishek Goel
Finance Trainee

3. Sales Tax Forms relevant for MRO
 Form – C : Inter-state purchase of goods
 Form – F : Inter-state transfer of goods to depots, agents etc.
 Form – I : Inter-state sale made to SEZ
As Guided by Mr. Schillu John

4. C - Form
 This form is to be filed when inter state purchase is to be made i.e.
the factory or the place of removal is in different state and seller is
in different state.
 The purchasing dealer shall obtain a C-form from the authorities
and submit it to the selling party. The selling party shall charge the
CST at a lower rate of 2% on the invoice and at the time of deposit
it must submit a copy of the C-form as well.
 The C- form is not required to be obtained for every transaction
and the same can be renewed after every quarter.
 In absence of Form-C, purchasing dealer would have been liable for
payment of tax at the same rate which is applicable to sale of such
goods within the State of selling dealer.
 Single Form C can be issued for quarter to cover the transactions
in between the two dealers.

5. Mechanism for C- Forms
The customer first obtains the form issued
by the State sales tax department. A single
C- form covers transaction between two
parties only.
The customer is required to
obtain the C-form from the
State Sales tax Authority, which
is issued to him in Triplicate.
The original and
the second copy is
to be sent to RIL
of which one is
submitted by RIL
to the Sales tax
authorities and
charges only 2% as
CST on invoice to
the dealer.
The third copy
is retained by
the dealer with
him for his
records.
Quarterly
Cycle

6. Form - F
 Form – F is used in the case of stock transfer from one state to
another state without a sale.
 A principal may transfer his goods to his agent, head office or a
manufacturing unit in one State may transfer its goods to its
branches or depots in other States, a purchasing agent may dispatch
goods to its principal in other State.
 Such a transaction of stock transfer shall not be treated as a sale and
therefore no sales tax should be charged thereon.
 In order to avoid the situation of levy of sales tax on such transfer
Form – F should be filed.
 Blank Forms F are issued by the Sales Tax / VAT / Commercial Tax
Department of the State, in which goods are delivered, to the
consignee dealer.

7. Form - I
 Form - I is to filed in case , there is an interstate sale to an SEZ
customer.
 As SEZ are tax free zones and significant amount of their turnover is
exported, the Government ensures that no domestic taxes adds on to
the cost of exported goods.
 The form is to be obtained from the SEZ dealer by RIL and CST on such
interstate sale shall be exempt.

8. Standardising Inbound and Outbound Registers
 Need for standardising arises as the warehourses are controlled
and directed by MRO directly.
 In case of any need of information for control and audit ,
uniform information shall be available for the same.
 Format has been reproduced in an Excel workbook attached
along with this presentation.
- As guided by Mr. T Raghvan and Mr. Lakshminarayan

9. Early Payment Incentives (EPI)
 Early Payment Incentives – An Introduction
 Early Payment Incentive Projections
 Mechanism of EPI Projections
As Guided by Ms. G. Revathy

10. Early Payment Incentives (EPI) – An Introduction
 “Early payment incentive” as the name suggests is the incentive in
terms of discount/rebate to the customers in the event of their making
an early payment.
 The credit period allowed to the customers is 10 days from the date of
invoice and all sales are made on ex-works terms.
 If the payment is made by the customer immediately on issue of invoice,
he is being offered a cash discount on his purchase.
 If the customer opts to make the payment within the credit period
allowed to him i.e. 10 days and makes the payment before the
completion of such period, then he stands to take the benefit of EPI.
 Say, for Polyethylene, the EPI benefit is of Rs.100/MT/Day and applies
uniformly to all customers.

11. Early Payment Incentives (EPI) Projections and Reality Analysis
 The customers who wants to take the benefit under EPI needs to make an
entry for the same in the B2B system with an amount they expect to pay to
reduce their dues on that day..
 Such an entry is required to be made by the agents/customers everyday by
11:00 AM in the morning.
 Such projections enables RIL to analyse the expected cash flows and to
decide upon the operating and financing leverage capacities.
 It also enables RIL to ensure an effective operating cycle thereby meeting
both ends of purchase of raw materials and sale of finished stock.
 Once the projections are being entered into the system , a reality analysis is
to be performed based on the actual receipts.
 A reconciliation of the actual receipts with that of the projected entries
made by the customers is then prepared by Ms. G. Revathy.

12. Mechanism of EPI Projections and Reality Analysis
Entry for the expected amount of payment is made
by the customer/agent in the B2B system.
The designated person at the regional office gets an
automated mail regarding the same.
In the evening a reality check is performed to
compare the actual receipts from the customers
with that of the those entered in the system.
On the basis of respective EPI policy, the customer
is provided with an incentive which is in the form
of a month end adjustment.

13. Deemed Exports
 What is Deemed Export ?
 Understanding - Duty Exemption and Duty Remission
 Understanding – Advance Authorization Scheme
 Deemed Export Tree
 The RIL Procedure and Document Checklist

14. What is a Deemed Export ?
 A manufacturer /trader either by mode of Advance
Authorization/Duty Remission can claim the exemption/refund of
duty paid on inputs utilized for manufacture of goods to be
exported/already exported.
 Customs Act,1962 provides a definition for exports to include, “with
its grammatical variations and cognate expressions, taking out of
India to a place outside India.”
 Hence , with a grammatical variation “Deemed Export” is also
“Export” under the Customs Act , 1962.

15. Understanding - “ Duty Exemption and Duty Remission”
 The Government of India has always shown a keen interest in promoting
exports because of which almost all exports are exempt from duty.
 The manufacturer who produces goods to be exported procures raw material
from supplier (FSD/SSD) or another manufacturer or by importing (Customs
Duty) the raw material.
 The manufacturer has to pay the full price for the goods he has acquired
including various duties and taxes levied by the state/central governments.
 He may be eligible for the respective credits for these duties and taxes , but
the end user has to bear the full price of the same.
 In order to ensure that these duties and taxes are not exported with goods ,
the government through its various agencies have created a mechanism of
Duty Exemption/Remission on export of goods.
 The mechanism is in the form of “Advance Authorization Scheme” , “Duty
Drawback Scheme” , “ Remission of Duty” .

16. Understanding the Advance authorization schemes
 Advance Authorizations are issued to allow duty free import of inputs,
which are physically incorporated in the export product (after making
normal allowance for wastage)
 The raw materials/inputs are allowed duty free as per the quantity
specified in the Standard Input-Output Norms (SION) notified by the
DGFT or as per self-declared norms
 The Advance Authorizations are issued both for physical exports as well
as deemed exports.

17. Customer (AA Holder)
Deemed Export Tree
Procures raw material from agentsImports
Clearance at the port
without payment of customs
duty (Copy of Advance
Authorisation to be
attached)
Agents procures
it from RIL (DTA
Plant)
Agents procures
it from RIL (SEZ
Plant i.e.
Jamnagar SEZ)
Similar to
Imports
Next Slide

18. The RIL procedure and documents checklist
Order Received from a DE
customer
Issue of Tie up letter by
RIL
Customer /Agent will then furnish self
attested copy of Advance authorization
Order
made to
DTA Plant
No
YesCustomer /Agent to
furnish Original
invalidation letter
The customer shall
furnish Annexure-I
to RIL for removal of
goods without paying
ED.
RIL will then issue a
contract to the customer to
confirm product, quantity ,
rate and other terms and
conditions under which
supply is effected.

19. Thank You