Central sales tax applies across India and requires dealers making inter-state sales to register. Registered dealers must pay central sales tax on inter-state sales. Central sales tax is levied by the central government but collected by the state where the goods were sold. A sale within a single state is treated as outside all other states and not subject to central sales tax, which is paid to the state from which the goods' movement commenced. Main provisions require registered dealers to pay central sales tax on inter-state sales at rates based on turnover calculated from sale price.
Central sales tax applies across India and requires dealers making inter-state sales to register. Registered dealers must pay central sales tax on inter-state sales. Central sales tax is levied by the central government but collected by the state where the goods were sold. A sale within a single state is treated as outside all other states and not subject to central sales tax, which is paid to the state from which the goods' movement commenced. Main provisions require registered dealers to pay central sales tax on inter-state sales at rates based on turnover calculated from sale price.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
Central sales tax applies across India and requires dealers making inter-state sales to register. Registered dealers must pay central sales tax on inter-state sales. Central sales tax is levied by the central government but collected by the state where the goods were sold. A sale within a single state is treated as outside all other states and not subject to central sales tax, which is paid to the state from which the goods' movement commenced. Main provisions require registered dealers to pay central sales tax on inter-state sales at rates based on turnover calculated from sale price.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
• It state that every dealer who makes an inter- state sale must be a registered dealer as per Section 7 of the Act, • Such registered dealer is liable to pay CST on the sales made by him in the course of Inter- state trade or commerce, • It also explains when a sale or purchase of goods will be in the course of import into and export out of the territory of India,such import and export of goods are not subject to Sales Tax. • CST is levied under this Act by the central govt. but it is collected by the state govt from where the goods have been sold. • Section 4 explains when a sale will be outside all other states. A sale which is withen the state is treated as sale outside all other states and hence will not come under the purview of CST. • CST is payble in the state from which movement of goods commences i.c the state from where the goods were sold. Main Provisions of CST • A dealer who must be a registered dealer and who carries on any business and makes a sale of goods including the declared goods to the buyer(who may be rgeistered dealer or unregistered dealer)in the course of inter-state trade or commerce in any year,is under an obligation to pay CST to the appropriate state,at the rates specified on his turnover computed on the basis of Sale-price.