E-1 sales

Raj Kumar Jain (Querist) 23 September 2013 This query is : Resolved
Sirs.

I purchased goods from UP. Can I sold the same in UP as Sale in Transit by transferring the documents.Will my supplier make the invoice as the goods sold to me & consignee to my dealer of UP.

Follow Query

Report Abuse

R.K Nanda (Expert) 23 September 2013
contact tax lawyer.

Anirudh (Expert) 23 September 2013
You cannot do it. In that case, the goods would not go out of U.P. in which case it would be a local sales and not a CST Sales. Even your purchase would become a local sale and would attract normal local VAT instead of concessional CST rate. Therefore, do not try to do any such things as proposed by you. YOU WILL BE IN DEEP TROUBLE. To put it in Hindi "LENE KE DENE PADJAYEGA"

R K JAIN (Expert) 26 September 2013
This sale in not E-1 sale since in E-1 sale there must be interstate sale. There is no bar in the sale in transit in the case of local sale. Both sale will be independent and considered as VAT paid sale.