Transit sale or e1 sale
This query is : Resolved
28 May 2013
I am registered dealer in Kanpur, Uttar Pradesh and I have a customer in Roorkee in Uttarkhand who want to purchase from us. One of our supplier in Delhi and I want to deliver the material directly from Delhi to Uttarkhand.Can it will treat as E1-C sale ? If yes then please clear me that who issue the E1 and C form and also Road Permit form and if the location Lucknow, Uttar Pradesh instead of Roorkee, Uttarakhand then it is E1-C sale?
28 May 2013
it can be treated as e-1 sale, delhi supplier has to issue e-1 form and customer in roorkee has to issue form-c
28 May 2013
if location lucknow, U.P. instead of Roorkee ? and please clear about road permit form. Who issue the road permit to whom?
28 May 2013
same position if the customer place is in UP, for road permit please refer the local laws
28 May 2013
Can any person clear my query as per local sale tax law in U.P. ?
02 August 2025
Here's a clear explanation based on your scenario and general sales tax practice in India (especially under VAT regimes like in UP and Uttarakhand before GST):
---
### Your Scenario:
* You (dealer) in **Kanpur, Uttar Pradesh (UP)**
* Supplier in **Delhi**
* Customer in **Roorkee, Uttarakhand**
* Goods shipped directly from Delhi to Roorkee
---
### What is E1-C Sale (Interstate Sale with Transit)?
* **E1 Form:** Issued by the seller/supplier to the transporter to allow movement of goods without payment of local sales tax in the state of origin.
* **C Form:** Issued by the purchaser (registered dealer) in the destination state, allowing the seller to charge tax at a concessional interstate rate.
* This arrangement is for **interstate sales where goods are transported from one state to another.**
---
### In Your Case:
* The **supplier in Delhi** is the seller of goods to you (dealer in Kanpur, UP).
* The supplier in Delhi will issue **E1 Form** to allow goods to move from Delhi without paying Delhi VAT.
* You, as the purchaser in UP, will issue **Form C** to the Delhi supplier, so they can sell at concessional interstate tax.
* Since the goods move directly from Delhi to **Roorkee (Uttarakhand)** which is another state, and you are purchasing them in UP, this is essentially a **transit sale**.
---
### If Customer Location is in Lucknow, UP instead of Roorkee:
* The goods move from Delhi to UP (Lucknow).
* This would **not be an interstate sale** because both seller (Delhi) and buyer (Kanpur) are in different states, but delivery is to UP.
* The supplier in Delhi needs to follow UP local laws on interstate goods movement.
* **E1 form and Road Permit** rules may differ based on UP VAT rules.
* Generally, if goods enter UP, a **road permit** is required from UP authorities for interstate transport of goods.
* **Local authorities in UP** will issue road permits to the transporter.
---
### Summary:
| Scenario | E1 Form issued by | C Form issued by | Road Permit issued by |
| ------------------------------------------------------------- | --------------------- | -------------------- | ---------------------------------------------------------- |
| Delhi supplier to Kanpur (UP) buyer, delivery in Roorkee (UK) | Delhi supplier | Buyer in UP (Kanpur) | Transporter to carry Delhi to UK, permit as per UP/UK laws |
| Delhi supplier to Kanpur (UP) buyer, delivery in Lucknow (UP) | Depends on UP VAT law | Buyer in UP | UP authorities to issue road permit |
---
### Advice:
* Check local sales tax/VAT rules of **UP and Uttarakhand** for road permits and interstate sales.
* Ensure all forms are properly issued to avoid tax penalties.
---
If you want, I can help draft the forms or explain the steps to obtain road permits! Would that help?
---
### Your Scenario:
* You (dealer) in **Kanpur, Uttar Pradesh (UP)**
* Supplier in **Delhi**
* Customer in **Roorkee, Uttarakhand**
* Goods shipped directly from Delhi to Roorkee
---
### What is E1-C Sale (Interstate Sale with Transit)?
* **E1 Form:** Issued by the seller/supplier to the transporter to allow movement of goods without payment of local sales tax in the state of origin.
* **C Form:** Issued by the purchaser (registered dealer) in the destination state, allowing the seller to charge tax at a concessional interstate rate.
* This arrangement is for **interstate sales where goods are transported from one state to another.**
---
### In Your Case:
* The **supplier in Delhi** is the seller of goods to you (dealer in Kanpur, UP).
* The supplier in Delhi will issue **E1 Form** to allow goods to move from Delhi without paying Delhi VAT.
* You, as the purchaser in UP, will issue **Form C** to the Delhi supplier, so they can sell at concessional interstate tax.
* Since the goods move directly from Delhi to **Roorkee (Uttarakhand)** which is another state, and you are purchasing them in UP, this is essentially a **transit sale**.
---
### If Customer Location is in Lucknow, UP instead of Roorkee:
* The goods move from Delhi to UP (Lucknow).
* This would **not be an interstate sale** because both seller (Delhi) and buyer (Kanpur) are in different states, but delivery is to UP.
* The supplier in Delhi needs to follow UP local laws on interstate goods movement.
* **E1 form and Road Permit** rules may differ based on UP VAT rules.
* Generally, if goods enter UP, a **road permit** is required from UP authorities for interstate transport of goods.
* **Local authorities in UP** will issue road permits to the transporter.
---
### Summary:
| Scenario | E1 Form issued by | C Form issued by | Road Permit issued by |
| ------------------------------------------------------------- | --------------------- | -------------------- | ---------------------------------------------------------- |
| Delhi supplier to Kanpur (UP) buyer, delivery in Roorkee (UK) | Delhi supplier | Buyer in UP (Kanpur) | Transporter to carry Delhi to UK, permit as per UP/UK laws |
| Delhi supplier to Kanpur (UP) buyer, delivery in Lucknow (UP) | Depends on UP VAT law | Buyer in UP | UP authorities to issue road permit |
---
### Advice:
* Check local sales tax/VAT rules of **UP and Uttarakhand** for road permits and interstate sales.
* Ensure all forms are properly issued to avoid tax penalties.
---
If you want, I can help draft the forms or explain the steps to obtain road permits! Would that help?
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