Local sale or inter state sale

samir mehta (proprietor) (24 Points)

27 April 2012  

Mr. A in Maharashtra wants to sell goods to Mr. B in Maharashtra. The purchase order specifies that delivery to be given directly to  Mr. B's customer i.e. Mr. C in Karnataka. Is the transaction of sale between Mr. A and Mr. B both of Maharashtra, an inter state sale u/s. 3(a) of CST Act as movement of goods is out of state. If, yes can Mr. B give C Form to Mr. A who is in same state. Pl. reply.