querry on sale in transit

This query is : Resolved

paresh zatakia (Querist)
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06 June 2011 Dear Colleagues,
Mr.A of Mumbai purchased goods from Mr.B of chhatishgarh.
Mr.A sold the goods in transit by transferring L/R to C of U.P.(L/R was consigner B,consignee A,
A endorses the same on back in favour of C)
B has charged 2% cst( AGAINST C FORM) to A, and A has charged 2% cst to C( AGAINST C FORM).
IS THE ABOVE SALE SALE IN TRANSIT?
ACCODRDING TO ME
1) It is not SIT, SINCE BOTH THE TIME CST HAS BEEN PAID
2) E1/E2 are not required.
Kindly guide.
Regards
CA Paresh Zatakia
9833855518
"Print this mail only if absolutely necessary. Save Paper. Save Trees."

Sanjeev Kumar

Sanjeev Kumar (Expert)
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07 June 2011 this nature of transaction is covered under sales in transit concept and second sale is exempt from tax subject to form c+EI

paresh zatakia

paresh zatakia (Querist)
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08 June 2011 but since the dealer has not avAiled exemption(i.e.charged cst both the time),E1/E2 IS NOT REQUIRED,AM I RIGHT?

Sanjeev Kumar

Sanjeev Kumar (Expert)
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08 June 2011 Yes- if charged CST@2% in both the transaction, then only form "C" is required.

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