02 January 2010
We are purchasing goods from a local party say "A" and selling the goods to party say "B" based in other state. Can we make a sale in transit to B. Goods are directly transported from A to B Which forms are to be collected if the sale is treated as sale in transit
02 January 2010
You cannot make sales in transit on the local purchases you have made until the same is in the series of transit sales. If goods are directly transported to b from a , then it is a central sales by A. This sales is not a transit sale.
04 January 2010
DIFFERENCE IN OPINION.... For sale in transit it is necessary that Goods should get directly transported. In current ex. from A to B and one most imp condition is that the goods should cross the border of any state. A will issue a bill to you and charge you 2% CST. You Will issue Sale Bill to B and no tax will be charged. On you bill "Sale in Transit" should be written. Lorry Receipt should be made by Consigner A to Consignee B on account of you. You will collect C form from B. You will give C form to A. And A will give E1 form to you. Regards.
05 January 2010
Difference in opinion Sir, Your Case comes under predetermined sales and not in sales in transit. In case of sales in transit,subsequent sales must be occassioned through transfer of documents.
CAclubindia
