cst / vat

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raajjhesh (Querist)
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19 March 2010 Is their any rule / acts says that a registered dealer can't have his own vehicles for transportation of material.

If no such rule/act, whether registered dealer can use the vehicle for his own business?

If yes, then if he purchase the goods from home state and delivers in another state, by charging 2% C.S.T., is this transaction is allowed?

If yes, And if the dealer purchase the goods from another state from his own vehicle, against form C and delivers the goods in home state the same quantity, against “Sale in transit” i.e. by endorsing the lorry receipt, against form C, is this transaction is allowed?

How a dealer can effect the “sale in transit” transaction, for following case,
Dealer purchase the goods from Gujarat state, and delivers the same in Maharashtra, but in another city.. If the goods have to be delivered in Mumbai and the dealer is located at Solapur, how he can endorse the L.R. It is not practical and viable to bring the vehicle to Solapur just for endorsing the documents and send back again to Mumbai.

Please comment.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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20 March 2010 A dealer can use his own vehicle for delivery or purchasing goods. The same is alloowed under law.

If you want sell without taking delivery of the goods then you have to issue E 1 form under cst which is called as sale in transit.

Please download E1 form and see the particulars sought for.

Rahul Vora

Rahul Vora (Expert)
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20 March 2010 Agree with expert

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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20 March 2010 Further to add on to cooment of Shri B.Srinivassulu...

Though endorsment on the L.R. is advisable where practicle, however their is no hard & fast rule since E1 form is mandatory to issue for establising the sale in transit.

Regards
K.L.Paliwal

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