Implication of Sale tax

[Sudhakar Sinha]

I A is a manufacturer, B is Supplier and C is Purchaser. C inspect the goods manufactured by A at premises of B and then the B transfer the goods to C. A, B, & C are in different state. then kindly explain the implication of Sale tax in this case

AI Summary

Sales Tax Query: Three-Party Transaction Deemed Interstate Sale, Not E-1 Under Sections 3A and 3B of CST Act 1956. In the discussion forum, a query was raised regarding the sales tax implications for a transaction involving three parties: a manufacturer, a supplier, and a purchaser, all located in different states. The purchaser inspects goods at the supplier's premises before the supplier transfers the goods. The response clarified that this scenario does not qualify under sections 3A and 3B of the CST Act, 1956, and should be treated as a simple interstate sale, not an E-1 transaction.