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Antariksh Suri (Querist)
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26 December 2012 I am registered VAT dealer in Gurgaon. I wish to buy goods from a manufacturer in Gujrat and hence I need to pay excise and cst (2%). And i have a buyer in Chennai and I want to deliver the goods directly from Gujrat without first bringing the goods to Gurgaon.

Please tell me that can i do so, without anyway increasing any hurdles in terms of tax?

CA. Hari Kishan

CA. Hari Kishan (Expert)
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26 December 2012 You can effect a E1 sale (sale in transit) as provided under the CST act.

Antariksh Suri

Antariksh Suri (Querist)
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26 December 2012 @ CA Hari Kishan: Thank You for answering but I am still not clear about how can we send the goods directly from Gujrat to Chennai..

By E1, I think we'll have to bring the goods to Gurgaon first. I think E1 is just a mechanism of avoiding double taxation on single transaction but what about transportation?

CA. Hari Kishan

CA. Hari Kishan (Expert)
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26 December 2012 You may endorse the Lorry freight receipt.. and ask your supplier to bill the invoice in your name and delivery address as your customer.. also you shall require to intimate the same to the transporter .. this would be a e1 transaction.

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