E 1 transction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 Party 'a' supplies goods from Andhra Pradesh to Party 'b' in Maharashtra where party 'a' will charges 2% CST against C Form to Party 'B'.
Party 'b' receives purchase order from party 'c' two days after dispatch date of party 'a' to party 'b'. subsequently party 'b' acknowledge the receipt from party 'a' on the documents & diverts the goods to party 'c' as sale in transit. in this case party 'a' will provide E-1 form to party 'b'and party 'b' will provide Form C to Party 'a'
Party 'b' will bill to party 'c' inclusive of CST partly in Rajasthan and Partly in Tamilnadu against form C to be issued by party 'c' to party 'b' from both this state separtely provided party 'c' is registered in both states under sales tax. under sales tax

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
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07 July 2012 where a sale of
any goods in the course of inter-State trade or commerce has either occasioned the movement
of such goods from one State to another or has been effected by a transfer of documents of
title to such goods during their movement from one State to another, any subsequent sale
during such movement effected by a transfer of documents of title to such goods,-
(a) to the Government, or
(b) to a registered dealer other than the Government, if the goods are of the
description referred to in sub-section (3) of section 8.
shall be exempt from tax under this Act

So If dealer has taken delivery of goods and then goods are trasfered to other dealer this will not b Transit Sale. Thus will be liable to tax

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CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
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07 July 2012 If goods are transfered by document of title then B of Maharashtra will not charge any TAX to c

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