What do you mean by central sales tax?
Central Sales tax refers to the tax levied on sales generated during inter-state trade and commerce in a country. It is an indirect, origin-based tax. Central sales tax is a subject of the Union List in the Constitution of India and is therefore, the prerogative of the Central Government to levy the same.
What is I form in CST?
Inter-state sale of goods to a unit located in SEZ is exempt from payment of central sales tax, subject to the purchasing unit issuing a statutory declaration in Form-I. Sale of goods to a unit located within the same state is governed by the VAT legislation of the relevant state.
What is the taxable event of central sales tax?
The taxable event for the purpose of levy of CST is inter-state sale or purchase of goods including works contract.
How do I appeal sales tax?
If you are dissatisfied with the decision of the Appellate Deputy Commissioner, you may, within 60 days of the date of the notification of that decision, file an appeal with the Appellate Tribunal. You must send to the Commercial Taxes Department a copy of appeal which you have filed with the Appellate Tribunal.
What is CST with example?
CST means Central Sales Tax. For example, if sale of goods is moved from Mumbai to Bangalore, CST is levied. The revenue collected as Value Added Tax VAT is meant for central government. Exemptions to collect CST. The exempted goods are not charged CST.
Who collects central sales tax in India?
the Central Government of India
Central Sales Tax (CST) is a tax on sales of goods levied by the Central Government of India. CST is applicable only in the case of inter-state sales and not on sales made within the state or import/export of sales. CST is payable in the state where the goods are sold and movement commences.
What is CST assessment order?
CST Act stipulates the conditions to be fulfilled by the dealer, to prove that the material movement has taken place not as a result of sale, but on account of stock transfer to his place of business or to his agent or principal in another State(s).
What is H form sales?
H Form / Form H. ‘H Form’ under CST is issued when the inter-state buyer is an exporter and buys the goods for the purpose of exports. If the exporter buyer (who belong to other state) issues ‘H form’, the selling dealer is not required to charge or pay any CST on the transaction.
What is central sales tax give the type of sales in India?
The goods that are sold through inter-state trade are subject to Central Sales Tax (CST) in India. However, all sale to foreign missions and SEZs should not be charged any CST. If any item is returned within 180 days, this tax will not be levied.
Is central sales tax replaced by GST?
The Central Taxes Replaced by GST The introduction of the GST has replaced the following taxes, which was levied earlier.
What is meant by appeal in sales tax?
Appeal to Collector appeals An appeal can be filed with the Collector (appeals) against the order-in-original passed by the Additional Collector, Deputy Collector, Assistant Collector and Superintendent.
Which section is dealing with definition of place of business under Central Sales Tax Act?
5[(dd) “place of business” includes— (i) in any case where a dealer carries on business through an agent by (whatever name called), the place of business of such agent; (ii) a warehouse, godown or other place where a dealer stores his goods; and.
When does Central Sales Tax ( CST ) apply?
INTRODUCTION Central Sales Tax (CST) is a tax on sales of goods levied by the Central Government of India. CST is applicable only in the case of inter-state sales and not on sales made within the state or import/export of sales. Inter-state sale is when a sale or purchase constitutes movement of goods from one state to another.
Is the sale to the government taxable at 4%?
Sale to government is taxable @ 4% or applicable sales tax rate for sale within the State whichever is lower. This concession on CST is applicable if Form D is issued by the government department which purchases the goods. This form is issued by the dealer who makes the first inter-state sale during movement of goods from one State to another.
When is central sales tax applicable in India?
Central Sales Tax (CST) is a tax on sales of goods levied by the Central Government of India. CST is applicable only in the case of inter-state sales and not on sales made within the state or import/export of sales. Inter-state sale is when a sale or purchase constitutes movement of goods from one state to another.
What is the sales tax rate for sale to a Registered Dealer?
Sale to registered dealer is @ 4% or sales tax rate for sale within the State, whichever is lower, if the goods are eligible and are specified in the Registration Certificate issued to the purchasing dealer. The Purchasing dealer has to submit the declaration in the prescribed C Form to the selling dealer.