If a party of West Bengal sell goods to a party of Bihar against C Form and that party sells goods to another party of West Bengal against C Form. Now the Commercial Tax Department raised a question regarding this matter and they refused issue E-1 Form. And they are also saying that between First Party and the last party VAT to be charged. What will be solution for this matter?
As per section 6(2) of CST act first interstate sale will be taxable, subsequent sale during movement of goods by way of transfer of document is exempt from tax. For making subsequent sale exempt Form E1 & E2 are used.
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