09 January 2008
E-1 form is a statutory form under the CST Act 1956, It is required where the sale is made in transit through endorsment of the documents. For example: A Ltd Co in Karnataka is a vendor, B Ltd is Buyer in Gujrath. and the C ltd is the customer located in Andhrapradesh. The first sale is between A Ltd Co and B Ltd co and the second sale is between B ltd and C Ltd. When the goods are delivered from A ltd to C ltd on direction by B ltd, B Ltd has to issue E-1 form to A ltd to prove that subsequent sale (Between B and C) is exempted from tax. The major benefit is through the issue of E-1 form the subsequent transcations will be exempted from tax
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