Sale in transit / CST without C -Form

[ashok sharma]

Dear Sir,

Our firm is registered in delhi (A), we purchace the nonwoven fabric from gujarat based manucacturer (B) and want to sell it in mumbai based customer (C). 

We want to supply this material directly Gujarat to Mumbai and mumbai based customer sell this fabric in many states.

So, what should i do? (My CA has informed about E1/E2 form, but i am not clear).

Gujarat based company (B) will issue the form E1 to me and what i will do next?

Sales tax is exempted on Nonwoven Fabric in Gujarat. So, what should i charged from Mumbai based customer.

Please help.

Regards,

Ashok Sharma

M:9971480050

 

AI Summary

Delhi Firm Seeks Guidance on Tax Implications for Sale in Transit of Nonwoven Fabric Using E1/E2 Forms A firm in Delhi seeks advice on conducting a sale in transit involving nonwoven fabric purchased from a Gujarat manufacturer, to be sold directly to a customer in Mumbai. The query involves understanding the use of E1/E2 forms for such transactions and the tax implications, given that sales tax is exempt on nonwoven fabric in Gujarat. The response advises that the firm should not charge additional tax to the Mumbai customer but should pass on any tax charged by the Gujarat supplier.