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E 1 sales

22 December 2011

Dear Sir,

I am working in a trading firm at Chennai, Tamilnadu. We want to buy a generator from Bhavnagar,Guajarat and wants to sell the same at kakinada, Andhrapradesh.

I want to know how to make papers for this. We want to avoid truck coming to Chennai, Tamilnadu & Leaves to Kakinada, Andhrapradesh. One of my friend told me that this transaction can be done on E1 sales. I do not know how to do that ? Can anyone help me ?

LSRaghavan

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2 Replies

C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 22 December 2011

Ya this is the transit sale, you have to do following

Instruct to your transporter to directly delier the goods to concern party on behalf of you.

Vendor (you) will draft a commercial bill agst Bhavnagar, Gujrat and mentioned reference of Kakinada, Andhrapardesh which is your creditor

This type of transaction attract the Central Sales Tax Act if goods are sold at concessional rate of tax (CST) then you have to get C-From from creditor and give E-1 from to him. Such party will give E-2 form to Final Conumer after receiving E-1 form

These forms are issued by Sales Tax Department

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 23 December 2011

I think some endorsement is required in the Lorry Receipt/Waybill. That is, buyer A in chennai has to sign in the backside of the LR in favour X party, kakinada. An interstate bill is to be raised charging CST against C Form.

rengaraj r.k