TaxTMI 
TaxTMI 
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.
purchase from same state and material delivered to another state
26 Jul 2016 
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In-transit sale: direct delivery to an out-of-state buyer can qualify for Form C/E1 if the first sale is interstate.
Where goods are purchased from a seller in one State and delivered directly by the seller to a buyer in another State, the transaction may qualify as an in-transit sale and attract inter-State treatment if the movement of goods occurs under the contract of sale and appropriate transit documentation (Form C/E1) is obtained; however, entitlement can be contested where the first sale is argued not to be interstate or where an intermediary in the seller's State affects the character of the sale. (AI Summary)
Where goods are purchased from a seller in one State and delivered directly by the seller to a buyer in another State, the transaction may qualify as an in-transit sale and attract inter-State treatment if the movement of goods occurs under the contract of sale and appropriate transit documentation (Form C/E1) is obtained; however, entitlement can be contested where the first sale is argued not to be interstate or where an intermediary in the seller's State affects the character of the sale. (AI Summary)