consider the following illustration and suggest the apt answer
Mr X is a sports dealer in Hyd Mr.Y is a supplier in Mumbai
x receives goods from Y pays CST and sells it to z(dealer in Jaipur Rajasthan)
Now the problem is x want to deliver the goods directly from Y to Z under his invoice and he is ready to pay VAT and forgo margin if necessary suggest the procedure and solution
18 January 2012
This transaction is called Sale in Transit, Since goods movement from one state to another you cannot treat as VAT transaction and cannot pay as VAT, it can be paid CST only.
In case Z also a register dealer in position to issue C form. the you can take this transaction under E1 transaction, or if he not in the position to issue C form then pay VAT rate only but as CST.
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