15 October 2012
Dear Sir, Pl clarify the following
If Mr. A from Mumbai sells the goods to B in Chennai. Now during the movement of goods B endorse the LR & ask to deliver the same to C's Job site situated at Kerala(But C's Registered office & place of business is Chennai). In this situation whether B can claim the exemption U/s 6(2) on sale to C ? Reagrds, S.Jegadeesan
16 October 2012
Mr Jagdheeshan, B can sell the goods bought from A to C by endorsing the LR and issuing another invoice. This is an E1 sale. If it is to be delivered to the job site of C in Kerala it can not be done by endorsing the LR by B. C has to issue his own delivery note showing it as a stock transfer for job work and get it back or whatever he does. This is because C is registered at Chennai and B has to issue his invoice to that address. Delivery and sale address have to be same. If these two differ checkpost people will create problems...MJK.
17 October 2012
Dear Sir, Thank you so much for your reply. By meantime could you please clarify the following
1.Is it possible to issue the C form by the buyer to the seller when both of them belong to the same state under E 1 sale?
Because in my query B & C having the office adddress in Chennai only. Now I think as per the Act, A(Mumbai) has to issue E1 to B B(Chennai) has to issue C form to A C(Chennai) has to Issue C form to B.
Please confirm whether is it possible under E 1 Sale? Regards, S.Jegadeesan
CAclubindia
