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

Sale by transfer of documents of title during movement gives CST exemption when prescribed registration and form conditions are met.
Subsequent sales effected by transfer of documents of title during the movement of goods qualify for a central sales tax exemption only if the original sale occasioned interstate movement or was effected during movement, the subsequent purchaser is a registered dealer, the goods match the purchaser's registered description, and the prescribed certificates and declarations (E I/E II from sellers and C form from buyers) are obtained and filed within the prescribed time and manner.