interstate purchase and local sales

This query is : Resolved

Mukesh Bansal (Querist)
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15 March 2008 i am registered dealer in delhi, i have got an order from delhi dealer so i purchased material from uttarpradesh and send directly to customer. my sale to delhi dealer will be exempt from CST or not ? whether i can receive E-1 form from uttarpradesh dealer and can give c form to uttarpradesh dealer ? my customer in delhi will give me c form or not? my sale to my customer in delhi will be treted as sales in the course of movement of goods and will be covered u/s 3(b) of CST act.

Jitender Garg

Jitender Garg (Expert)
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17 March 2008 To call a sale ISS there should be a ;
1- contract of sale.
2- due to which there is movement of goods
3- from one state to another

So yor transaction with delhi dealer is not exempt from CST.

In any transaction of ISS there can not be double Taxation & yor transaction with UP dealer is also a ISS.

So to exempt from CST u have to receive E-1 form from uttarpradesh dealer and give c form to uttarpradesh & give E-1 to delhi dealer(he is to be registered dealer) and receive c form from Delhi.

kartik_somu

kartik_somu (Expert)
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19 March 2008 Yours is an Interstate Purchase and not an interstate Sale. 'C' Form will not be required for sale to Delhi Delaer and CST will not be applicable.

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CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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14 July 2009 I think Mr. Mukesh's question is to be understand properly. Perhaps, he is talking about E-1 sales. If the sale to Delhi dealer is being made by him during movement of goods vide transfer of document of title from one state top another, the sale within Delhi will be traeted as CST sales [Section 3(b)].