Sales in Transit - E-1 forms

[Guest]

Dear Sir,

What is Sales in Transit. ?

For getting issued of E-1 form from Sales Tax dept. which documents required to submit.

Endorsed copy of L.R. is need ?

What, in case where material is directly supplied to the third party from the manufacturing unit.

[meil megha]

The Purchaser (A) is ordered goods from Seller (B). A instructs and endorsed the LR in favour of C for dispatching the material to C this transaction is called as sale in transit. It means the material is sold to another party in transit. The same has to declare in the monthly/Quarterly returns for getting E1 forms from the department.

[YAGAY andSUN]

Dear Salil,

In addition to the appended reply, please also check the Section 3 read with Section 6 of the CST Act, 1956.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Understanding Sales in Transit: Direct Dispatch to Third Parties Requires Endorsed L.R. and Compliance with CST Act Sections 3 & 6. Sales in transit refers to a transaction where goods are ordered by Purchaser A from Seller B, and A instructs the goods to be dispatched directly to a third party, C. This requires an endorsed L.R. and must be declared in monthly or quarterly returns to obtain E-1 forms from the Sales Tax department. For further guidance, reviewing Section 3 and Section 6 of the CST Act, 1956, is recommended.