Sale in transit

[guna ch]

Dear sir/s,

1.Kindly advise me  what are the sale in transit accounting book entries, in books of manufacturer, next seller, ultimate buyer.

2. I could not understand how the CST is exempted in this transaction(Manufacturer charging CST and buyer paying then how it si exempted)

If it possible kindly explain me with example sir

AI Summary

Understanding Sale in Transit Under CST Act 1956: Tax Exemptions, E-I/E-II Transactions, and Required Forms Explained A discussion on the sale in transit under the Central Sales Tax (CST) Act 1956, initiated by an anonymous user, involves queries about accounting entries and CST exemptions. The respondent explains E-I and E-II transactions, highlighting that the CST Act allows for tax exemption on subsequent interstate sales made during goods transit, provided certain conditions are met. These include the transfer of title documents, sales to registered dealers, and the issuance of specific forms (E-I/E-II and C forms). The response also references relevant legal cases and a West Bengal government circular clarifying these provisions. The discussion concludes with a query about the rationale behind sale in transit transactions.