E1 SALES UNDER CST ACT

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CA.PARAMASIVAM.K

CA.PARAMASIVAM.K (Querist)
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14 July 2009 I want to clarify the facts of the following case.
A is a dealers in Tamilnadu - seller
B is a manufactures in Delhi - seller
c is a dealer in Mumbai - purchaser
A take order from C and purchase machines from B. Machines are delivered directely to C i.e to MUMBAI. LR taken to mumbai.
machines not come to tamilnadu.
In this situation its E1 sales or not.
if its E1 sales which forms are to be issued and by whom.
if its not E1 sales what is the tax rate.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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14 July 2009 Yes.
It is sales in transit as per Sec.6(2) of CST Act.
The following forms will be issued:
B will give "E1" Form to A.
C will give "C" Form to A.
A will give "C" Form to B.

If it is not a sale in transit sale, the tax rate will be the local VAT rate prevailing.

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CA.PARAMASIVAM.K

CA.PARAMASIVAM.K (Querist)
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15 July 2009 Thanks Nitin. I want to clarify one further point.
In the above situation what is the procedure and tax rate if "C" is not a dealer. He is the final consumer-not a dealer. Expect your valuable comments. Whether the goods move from delhi to mumbai allowed?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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15 July 2009

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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15 July 2009 If C is not a dealer, it means he cannot furnish "C" form and hence A will levy the normal VAT Rate prevailing to C.

Good Instance.
I have come across such a situation.
If you further you can revert back to me.

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