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Sale of mobile without vat in chennai

nitin (partner) (73 Points)

14 July 2012

hello

i am taking a distributorship of a mobile company from delhi and wish to sell to local wholesellers in chennai without paying VAT. I came to know that i can do so against E1 sales and get form c from the registered dealers to whom i am selling. please confirm me if i can do so and there is no limit for E1 sales ? Thank you.

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Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 14 July 2012

ya such type of sales are known as section 6(2) sales as such sales are defined in section 6(2) of CST act , 1956 in such sales you will obtain C form from your customers and issue C form to the delhi party from whom u r purchasing and lastly obtain E1 form from that Delhi supplier ok......