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?
29 May 2013
Yes, it can be treated as E-1 sales, provided all other formalities are completed. It will not make any difference if the ultimate buyer is in U.P. or Uttarakhand.
The First Supplier will give E-1 to first purchaser. The first purchaser will give C form to Supplier and Second Buyer will give C form to First buyer. Further for E-1 Sales the title of goods should be transferred during the movement of goods only.
The First Supplier will give E-1 to first purchaser. The first purchaser will give C form to Supplier and Second Buyer will give C form to First buyer. Further for E-1 Sales the title of goods should be transferred during the movement of goods only.
29 May 2013
And please clear me that who will be issue the Road Permit form for import the material with in the state to whom ?
02 August 2025
Here’s a detailed explanation for your query on **Transit Sale / E-1 Sale** involving multiple states (Delhi, UP, Uttarakhand):
---
### Situation:
* You’re a registered dealer in **Kanpur, UP**.
* Your customer is in **Roorkee, Uttarakhand** (or possibly Lucknow, UP).
* You procure goods from your **supplier in Delhi**.
* Goods are directly delivered from Delhi to your customer in Uttarakhand (or Lucknow).
---
### Can this be treated as E-1 / C Sale?
**Yes**, it can be treated as an **E-1 sale** (interstate sale with transit) under VAT laws, subject to conditions:
* The **title (ownership) of goods must transfer** during the movement from Delhi to destination.
* Proper documentation and forms need to be exchanged between supplier, purchaser, and customer.
---
### Who issues which form?
| Form | Who Issues | To Whom | Purpose |
| ---------- | ------------------------------------ | --------------------- | ---------------------------------------------------------- |
| **E-1** | Supplier in Delhi | Purchaser in UP (you) | To allow interstate movement without tax at origin (Delhi) |
| **C Form** | Purchaser in UP (you) | Supplier in Delhi | To enable concessional interstate tax rate |
| **C Form** | Customer in Uttarakhand (or Lucknow) | Purchaser in UP (you) | To enable concessional interstate tax rate for you |
* So, supplier gives E-1 to you.
* You give C form to supplier.
* Your customer in Uttarakhand (or Lucknow) gives C form to you.
---
### What about the Road Permit?
* **Road permits are usually required by the destination state** (Uttarakhand or UP) for goods entering the state from outside.
* The **transporter or consignee** (your customer or you) generally obtains the road permit from the local VAT/Sales Tax authorities **at the point of entry into the state**.
* **In Uttarakhand:**
* The road permit allows movement of goods within the state.
* Typically, the consignee or transporter applies for it.
* **In UP (if destination is Lucknow):**
* Similar procedure; permits issued by UP sales tax department or commercial tax authorities.
* The road permit ensures compliance with local sales tax laws for interstate goods entry.
---
### Summary Flow:
1. Supplier (Delhi) issues **E-1** to you (Kanpur, UP).
2. You issue **C form** to supplier (Delhi).
3. Your customer (Uttarakhand or Lucknow) issues **C form** to you.
4. Transporter/consignee obtains **road permit** from destination state’s tax authority.
---
If the location changes from Uttarakhand (Roorkee) to Lucknow (UP):
* The same E-1 / C form procedure applies because interstate sale happens from Delhi to UP.
* Road permit must be obtained for entry into UP as per UP laws.
---
### Important:
* Ensure proper transfer of title during movement to qualify as E-1 sale.
* Keep all forms (E-1, C) and road permits properly documented to avoid penalty.
* Consult local VAT/sales tax office if in doubt about road permit process.
---
If you want, I can help draft a sample E-1 form or C form format or guide you on road permit application procedure. Would you like that?
---
### Situation:
* You’re a registered dealer in **Kanpur, UP**.
* Your customer is in **Roorkee, Uttarakhand** (or possibly Lucknow, UP).
* You procure goods from your **supplier in Delhi**.
* Goods are directly delivered from Delhi to your customer in Uttarakhand (or Lucknow).
---
### Can this be treated as E-1 / C Sale?
**Yes**, it can be treated as an **E-1 sale** (interstate sale with transit) under VAT laws, subject to conditions:
* The **title (ownership) of goods must transfer** during the movement from Delhi to destination.
* Proper documentation and forms need to be exchanged between supplier, purchaser, and customer.
---
### Who issues which form?
| Form | Who Issues | To Whom | Purpose |
| ---------- | ------------------------------------ | --------------------- | ---------------------------------------------------------- |
| **E-1** | Supplier in Delhi | Purchaser in UP (you) | To allow interstate movement without tax at origin (Delhi) |
| **C Form** | Purchaser in UP (you) | Supplier in Delhi | To enable concessional interstate tax rate |
| **C Form** | Customer in Uttarakhand (or Lucknow) | Purchaser in UP (you) | To enable concessional interstate tax rate for you |
* So, supplier gives E-1 to you.
* You give C form to supplier.
* Your customer in Uttarakhand (or Lucknow) gives C form to you.
---
### What about the Road Permit?
* **Road permits are usually required by the destination state** (Uttarakhand or UP) for goods entering the state from outside.
* The **transporter or consignee** (your customer or you) generally obtains the road permit from the local VAT/Sales Tax authorities **at the point of entry into the state**.
* **In Uttarakhand:**
* The road permit allows movement of goods within the state.
* Typically, the consignee or transporter applies for it.
* **In UP (if destination is Lucknow):**
* Similar procedure; permits issued by UP sales tax department or commercial tax authorities.
* The road permit ensures compliance with local sales tax laws for interstate goods entry.
---
### Summary Flow:
1. Supplier (Delhi) issues **E-1** to you (Kanpur, UP).
2. You issue **C form** to supplier (Delhi).
3. Your customer (Uttarakhand or Lucknow) issues **C form** to you.
4. Transporter/consignee obtains **road permit** from destination state’s tax authority.
---
If the location changes from Uttarakhand (Roorkee) to Lucknow (UP):
* The same E-1 / C form procedure applies because interstate sale happens from Delhi to UP.
* Road permit must be obtained for entry into UP as per UP laws.
---
### Important:
* Ensure proper transfer of title during movement to qualify as E-1 sale.
* Keep all forms (E-1, C) and road permits properly documented to avoid penalty.
* Consult local VAT/sales tax office if in doubt about road permit process.
---
If you want, I can help draft a sample E-1 form or C form format or guide you on road permit application procedure. Would you like that?
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