Sales in Transit - E-1 forms

[Asked by 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 and SUN]

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

Sales in transit requires declaration in returns to obtain E 1 forms when LR is endorsed to a third party.
Sales in transit arises where a purchaser endorses the L.R. in favour of a third party so goods are dispatched to that third party while the sale remains that of the original purchaser; such transactions must be declared in the monthly/quarterly returns and supporting endorsement and dispatch documentation submitted to obtain E 1 forms.