Transit sale U/s. 6(2) of CST Act

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santosh kumar (Querist)

20 July 2011 Pls. any one help me to clarify about the transit sale U/s. 6(2)of CST Act & the treatment of tax, Form-C & E1

Preeti

Preeti (Expert)

21 July 2011
Trasit sale is sale of goods to another person while the goods are in movement

Eg :

A of AP has sold goods to B of Bombay

B endorses the document of title of goods to C of Chandigarh so goods are delivered to C directly

In above case , A has sold goods to B and B to C

Now A has made interstate sale to B

So B will issue form C to A ( this is simple to rememeber)

Now B has made interstate sale to C

C will issue form C to B( this is also simple as B has made interstate sale to C

Now Sale by B to C is known as C/E1 Sale which is exempt

Exempt sale is claimed by B so he needs to submit department form E1 in addition to C

Form E1 will be issued by A to B

Please note A can get form E1 issued only after he has received form C from B

Please let me know if any other clarifications

short of time right now otherwise will make a diagram and send u if not able to understand the above one

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