Sales in transit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2010 I am purchasing goods from Jharkhand and selling the same at Jharkhand to my customer through direct delivery from my suppliers godown at jharkhand.Supplier charges me 2% CST against C form. Now I have to invoice from west Bengal to my customer.What tax I will charge on invoice & is it under E-1 sales? What form I will get from supplier & from my customer ?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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11 May 2010 read by this link

http://www.taxguru.in/mvat/sales-in-transit-meaning-procedure-case-laws-and-legal-provisions.html

Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 May 2010 From the references provided by Ram Avatar ji, the purchase by you from your supplier at Jharkhand is not a interstate sale at all, as there is no movement of goods from one state to another. Consequently, your sale to your customer at Jharkhand is not an E1 sale.

In my view, the transaction is not exigible to taxation in West Bengal.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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11 May 2010 In this case, First sale is interstate sale, but subsequent sale is not interstate sale, hence it is not E1 Sale.
As per my view, You have to charged CST on such sale. Because here is bill to ship to concept.