Exemption u/s 6(2) u/s cst act 1956

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2012 "A"(Trader) is a registered dealer of Madhya Pradesh, and he wants to purchase goods from "B" who is a registered dealer of Maharashtra and wants to sell goods to "C" he is also a registered dealer of Maharashtra now A purchased goods from B and sell to C without taking delivery.

whether transaction exempt or not?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

04 September 2012 Mr Author,
Yes it is exempt,but necessary statutory forms ahve to be issued B has to issue E1 form to A. A to issue 'C' form to B and C to 'C' form to A.....MJK

Prakash Kochar

Prakash Kochar (Expert)

05 September 2012 B & C Both are dealers of Maharashtra. There is no movement of goods from one state to other or sale is not effected by B to C by transfer of documents of the title to goods during the movement of goods from one state to other.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

05 September 2012 Here sale is effected by transfer of documents during transit as per the author. Hence it is an interstate sale.
MJK

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