06 January 2010
Pls advise in case of first seller (A, Delhi) & ultimate buyer(C, Delhi) are located in same state & first buyer (B, Punjab), who will buy goods from A and then sale the goods in transit by way of endorsement to C.
Can this transaction term as E-1 transaction, when A & C are located in same state.
06 January 2010
For Sale in transit one necessary condition is that goods should cross the border of any state or states. In ur case it will not happen. Hence it cannot be an E-1 transaction. Regards
But we are fulfilling the both the conditions of Section 6(2) and Section 8(4) to get benefit of E1 transaction as our first sale is for interstate sale and subsequent sale is to registered dealer as mentioned is section 6 and Section 8.
12 January 2011
Explanation 2 to section 3 of CST Act provides that where the movement of goods commences and terminates in the same state it shall not be deemed to be a movement of goods from one state to another by reason merely of the fact that in the cource of such movement the goods pass through the territory of any other state.
Since it will not be a sales covered u/s 3 of CST Act it wont be eligible for exemption u/s 6(2)
For more on E1 and E2 sales can refer at the following link
CAclubindia
