25 January 2011
suppose "Mr A" mumbai sell goods to "Mr B " chennai . then after dispatch " B chennai endorse goods with in mumbai to another buyer "Mr C of Mumbai " . IN this sale will be called E1 sales or sale in transit. In this case Mr B will give c form to "A " and get E1 form from "A" .then Mr B will get c from Mr C .
for more info:- https://www.caclubindia.com/experts/transaction-under-form-e1-form-c-73551.asp
25 January 2011
Whwn sale is done while goods movement from one state to another state.Its called E-1 transaction or sale in transit.
suppose: X situated in Delhi purchased goods from Y in Punjab .Y booked the material on transport and send GR/RR(goods receipt note issued by transporter) to X. X instead of receiving material from transport himself sold the material to Z in Delhi (same state) by endorsing RR/GR in the name of Z.Z takes the delivery from the transporter .
In this case sale from Y to X is covered under CST and X to Z is also covered Under CST as sale in transit.
To complete the transaction X will issue C form to Y , Y will issue E-1 form to X Z will issue C form to X
In the above case even X & Z both are situated in Delhi but the sale transaction is covered under "sale in transit" clause of CST act so CST will be applicable and vat is not be charged.
CST is applicable only if goods movement is from one state to other state .If goods movement is started from one state and ends in same state then CST will not be applicable.
The Point is to be noted here that starts and end so if the start and end of movement of goods is interstate then CST will be apply but if start and end both in same state then vat will be applicable .suppose goods start movement from x state and moved through y state but movement of goods ends in x state then Vat will be applicable.
Goods moved from one state to another state for export/Import transaction and branch transfer are not covered under CST.
so location of the parties and billing is not important but movement of goods is important to decide whether CST is applicable or VAT is applicable.
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