Sales tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2011 If A purchase goods from B and intimate him to directly give these goods to C it means to avoid tax A sell goods to C and intimate B to give goods directly to C What is the procedure and forms applicable. Plz tell its urgent

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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14 December 2011 Mr. Author,
This is called sale in transit (E1)and permitted in only interstate transactions.A
has to endorse on or issue a letter to the effect of endorsing asking 'B' to directly deliver goods to 'C'.B has to issue E1 form to 'A'and 'C' has to issue 'C' form to A. A also has to issue a C form to B...
MJK