E1 e2 transaction& vat

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This query is : Resolved

PANKAJ ASAWA (Querist)

31 August 2012 I want to konw if first sale is intersate sale (
Mumbai,Maharasta to Ahmedabad,Gujarat ) & Second sale before taking
the delivery of goods from transport in gujarat to a registered delear
in gujarat ( i.e.second sale is within gujarat can we say that this is a intersate sale under cst act ) by transfering the documents of title of goods through
endorsing the document to gujarat dealer.Please tell me that this
second sale is only in Gujarat state because Both seller & Purchaser are in
gujarat.Can we say that this second sale is covered under cst act 1956 & issue E1
by First seller mumbai to first buyer ahmedabd & first buyer ahmedabad issue c form to first seller mumbai & second seller ahmedabad issue E2 to
second buyer ahmedabd & second buyer ahmedabad issue c form to second seller ahmedabad.

whether This second sale is covered under VAT act or not & Vat lability
attracted on this or not because this is the local sale within the state becuse both the party are registered dealer in gujarat

For a interstate sale seller & purchaser are must be belong to different state or not

Prakash Kochar

Prakash Kochar (Expert)

01 September 2012 This is E1-E2 transaction On 1st transaction CST will attract, 2nd transaction of sale without taking delivary by 1 st purchaser will also be interstate transaction. Transaction is covered under CST only.

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)

02 September 2012 I agree with Mr P Kochar. In continuation of an interstate sale subsequent sale by transfer of documents can be within the same state of first buyer. Here CST is applicable and VAT does not come in picture.....MJK

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