purchase from same state and material delivered to another state

[premchand talreja]

we are based in Mumbai, we intend to purchase some machinery from maharastra based manufacturer and supply it to customer based in Rajasthan. The material will be directly transported by manufacturer to our end customer. what are the requirements and how should we treat this transaction.

AI Summary

Complex Tax Implications for Machinery Sale: In-Transit or Not? Conflicting Judgments Under CST Act, 1956 A business based in Mumbai plans to buy machinery from a manufacturer in Maharashtra and deliver it directly to a customer in Rajasthan. The query concerns the tax implications of this transaction. One respondent suggests it qualifies as an in-transit sale, requiring Form C/E1. Another disagrees, citing the CST Act, 1956, and arguing it is not an interstate sale since the intermediary is also in Maharashtra. The discussion highlights differing interpretations and the presence of conflicting judgments on the matter, emphasizing the complexity of tax treatment in such transactions.