E-1 sale

MR. AGARWAL,

PLEASE CLICK THIS LINK :-

https://www.simpletaxindia.org/2009/12/e-1-sale-in-transit-cst-act-pre.html

REGARDS

In a Sales in transit, the purchaser sells the goods while in transit by endorsing the documents of title to the goods in movement. He gets the right once the goods are handed over to the independent bailee. The moment the party A in Delhi raises a Sale bill on the Party B in Jaipur and the goods are handed over to the independent bailee, the Party B becomes the owner of the goods and gets the right to sell them. The documents of title to the goods is the Lorry Receipt. If the Party B at Jaipur wants to sell the same to Party C in U.P., all he has to do is to endorse the same Lorry Reciept to Party C in U.P. and also raise a Sale bill.

But at the time of assessment, the Party B at Jaipur has to obtain C-Form from Party C in U.P. and also E-1 form from Party A in Delhi and submit them to his assessing authority. Like wise, if Party C in U.P. also wants to sell to Party D in Bihar in transit, then he has to obtain C-Form from Party D in Bihar and E-2 Form from Party B in Jaipur. and this goes on. But only one thing to be remembered is there is no E-3 or E-4 forms but only E-2 forms for all subsequent transactions. The E-forms move along with the goods and the C-Forms move opposite to the goods.