TaxTMI 
TaxTMI 
I am purchasing material from a manufacturer in Maharashtra and selling it to a customer in Gujarat, how do I use E1 transaction?
E1 transaction
14 Feb 2014 
6 Replies 
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E-1 transaction: sale-in-transit using endorsement of transport documents to effect title transfer and avoid multiple state tax.
E-1 transaction is a sale-in-transit mechanism where the first sale must be interstate; title transfer occurs on an ex-works basis and by endorsement of the original Lorry Receipt so the end customer takes delivery on the endorsed document. The intermediary issues C-form to the vendor, the manufacturer issues E-1 to the intermediary, and the intermediary collects C-form from the customer; an intra-state first sale does not qualify as E-1. (AI Summary)
E-1 transaction is a sale-in-transit mechanism where the first sale must be interstate; title transfer occurs on an ex-works basis and by endorsement of the original Lorry Receipt so the end customer takes delivery on the endorsed document. The intermediary issues C-form to the vendor, the manufacturer issues E-1 to the intermediary, and the intermediary collects C-form from the customer; an intra-state first sale does not qualify as E-1. (AI Summary)