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Sales - VAT - documents required

Pavan (CA) (76 Points)

01 April 2011

Dear CCIs',

In the course of a Inter-State Sale, goods of Trader X from Bangalore is lying with the manufacturer Y from Delhi.
X from Bangalore has agreed to sell the goods to M of Chennai.
Now X has to instruct Y to deliver the goods to M in chennai.

What documents should be accompanying goods moving from Y, Delhi so as to reach to M of Chennai.
Tax Invoices are to be generated by Y on X and X on M.
Any other form to be submitted in this course.

Please advise

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 02 April 2011

Originally posted by : Pavan
	Dear CCIs', In the course of a Inter-State Sale, goods of Trader X from Bangalore is lying with the manufacturer Y from Delhi. X from Bangalore has agreed to sell the goods to M of Chennai. Now X has to instruct Y to deliver the goods to M in chennai. What documents should be accompanying goods moving from Y, Delhi so as to reach to M of Chennai. Tax Invoices are to be generated by Y on X and X on M. Any other form to be submitted in this course. Please advise

1) Y will issue tax invoice to X and issue Transport documents in favor of X,

2) X will endorse the transport document in favor of M and X will raise invoice in favor of M without any additional Tax.

3) X will issue C form to Y, and ask for E-1 form

4) M will issue C form to X

take caution that before 1st despatch document, M is nowhere in picture, and M comes in picture only after endorsement of transport document in favor of M by X.