Sale In Transit
This query is : Resolved
02 June 2009
Dear Sir,
Please clarify the Sale in Transit system begining from basic.
Please clarify the Sale in Transit system begining from basic.
03 June 2009
Applicable sales tax law is decided based on movement of goods.
If movement of goods is between two states, Central sales tax (CST) is applicable. If movement of goods is within the same state, sales tax law of that state is applied.
Sales in transit can happen, when goods are in movement from one state to another state. It means that goods have not entered in buyer's state.
Original buyer endorses transport bill (so that delivery of goods can happen to new buyer) and handover relevant documents to new buyer. No sales tax is chargeable on the transaction and can be used as sales tax evasion tool, Hence, it is closely scrutinized by sales tax department.
If movement of goods is between two states, Central sales tax (CST) is applicable. If movement of goods is within the same state, sales tax law of that state is applied.
Sales in transit can happen, when goods are in movement from one state to another state. It means that goods have not entered in buyer's state.
Original buyer endorses transport bill (so that delivery of goods can happen to new buyer) and handover relevant documents to new buyer. No sales tax is chargeable on the transaction and can be used as sales tax evasion tool, Hence, it is closely scrutinized by sales tax department.
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