Validity and determination of sale

[RAJESH MISHRA]

Dear Sirs, Can we make transaction as per the below queries? If yes, kindly specify validity & nature of sale (Central / Local) with notification / rule & section. Query 1: In a transaction there are involve three dealers namely A of Mumbai, B of Delhi & C of Mumbai. Dealer B of Delhi wants to deliver / sale (sale in transit), Dealer C of Mumbai after purchasing goods from A of Mumbai. All three are registered dealer and having local & central registration certificate from their respective state. Is this sale is a valid sale or not? If it is valid sale kindly specify validity & nature of sale (Central / Local) with notification / rule & section. Query 2: Is predetermined sale can be termed as E-1/ E-2, sale? For example, in a transaction there are involve three dealers namely A of Mumbai, B of Delhi & C of U.P. Dealer B of Delhi instructed Dealer A of Mumbai to deliver goods to Dealer C of U.P. directly. Is this predetermined sale can be termed as E-1 sale i.e. sale in transit. Kindly give your valued suggestions with some judgment made earlier in this regard.

AI Summary

Clarification on E-1 and E-2 Sales Under Central Sales Tax Act: Interstate Movement Required, Consult VAT Expert for Advice A forum participant inquired about the validity and classification of certain sales transactions involving dealers from Mumbai, Delhi, and Uttar Pradesh. The queries focused on whether these transactions could be classified as E-1 or E-2 sales under the Central Sales Tax Act, 1956, which involves sales in transit. The response advised reviewing Section 3 of the Act, emphasizing that E-1 and E-2 sales typically involve interstate movement of goods. Since the described transactions lacked such movement, the respondent suggested consulting a VAT expert for guidance on maximizing tax credit benefits.