A has sales office in Karnataka and also in Tamilnadu. Registered to VAT in both states seperately. Tamilnadu office of A gets an order from a buyer 'B' in Karnataka. A in tamilnadu places an order on manufacturer 'M' in karnataka with an instruction to deliver the item to 'B' in Bangalore. Can it be construed as consignement sale or sale in transit. Please clarify
Clarification - consignement sale or sale in transit
A RAVINDRA
Debate on VAT and CST laws: Is direct delivery from manufacturer to buyer a consignment sale or sale in transit? A discussion on a forum addresses whether a transaction involving a sales office in Tamil Nadu, a buyer in Karnataka, and a manufacturer in Karnataka constitutes a consignment sale or a sale in transit under VAT and CST laws. The query involves the delivery of goods directly from the manufacturer to the buyer. Dinesh Gupta argues it is not a consignment sale since the goods do not move between states. A Ravindra disagrees, citing sections of the CST Act, but Dinesh Gupta maintains his stance, supported by another participant, Rama Krishana. (AI Summary)