Exemption u/s 6(2) u/s cst act 1956

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2012 "A"(Trader) is a registered dealer of Madhya Pradesh, and he wants to purchase goods from "B" who is a registered dealer of Maharashtra and wants to sell goods to "C" he is also a registered dealer of Maharashtra now A purchased goods from B and sell to C without taking delivery.

whether transaction exempt or not?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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04 September 2012 Mr Author,
Yes it is exempt,but necessary statutory forms ahve to be issued B has to issue E1 form to A. A to issue 'C' form to B and C to 'C' form to A.....MJK

Prakash Kochar

Prakash Kochar (Expert)
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05 September 2012 B & C Both are dealers of Maharashtra. There is no movement of goods from one state to other or sale is not effected by B to C by transfer of documents of the title to goods during the movement of goods from one state to other.

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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05 September 2012 Here sale is effected by transfer of documents during transit as per the author. Hence it is an interstate sale.
MJK