Central Sales Tax is an indirect tax levied by the central government on the inter-state sale of goods by registered dealers. It is collected by the state government but retained by the state of collection. Registration under the Central Sales Tax Act is required for dealers engaged in inter-state trade and there are penalties for non-registration. The key aspects covered are inter-state vs intra-state sales, objectives of the Central Sales Tax Act of 1956, and registration requirements and procedures for dealers.
The Central Sales Tax Act, 1956 provides the legal framework for levying and collecting tax on the sale of goods in the course of inter-state trade or commerce in India. Some key aspects include:
1. It defines terms like "sale", "declared goods", "place of business", and categorizes dealers as registered or unregistered.
2. The Act determines when a sale occurs within a state or inter-state and assigns an "Appropriate State" to administer the tax.
3. It empowers the central government to levy tax according to the tax rates of the Appropriate State and provides for the distribution of tax revenues among states.
This document provides information about various direct and indirect taxes in India. It begins with defining the key differences between direct and indirect taxes such as who bears the tax burden and issues of tax evasion. It then discusses some major direct taxes like income tax and indirect taxes like excise duty, customs duty, sales tax etc. It also explains the concepts of Central Sales Tax (CST), Value Added Tax (VAT), Modified Value Added Tax (MODVAT) and Central Value Added Tax (CENVAT) and provides details about their rates and rules. In conclusion, it summarizes the obligations of manufacturers producing both taxable and exempted goods under CENVAT rules.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods. It applies only to sales that involve the movement of goods between states and not on intra-state sales. Under the CST Act, any dealer involved in inter-state trade must register and pay tax. The Act provides a framework for determining whether a sale constitutes inter-state trade and for the levy, collection, and distribution of CST.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods between Indian states, with various forms like Form C and Form E used to document inter-state sales and claim lower CST rates; the tax collected is given to the state where the goods were sold. Certain goods like cereals, coal, and sugar are considered "declared goods" subject to lower CST rates compared to other goods.
An excise duty is a tax on goods produced within a country, as opposed to customs duties on imported goods. It is levied on the production or sale of goods and is a source of government revenue. To be subject to excise duty, goods must be movable, marketable, and mentioned in the Central Excise Tariff Act. There are basic, special, and additional excise duties charged at different rates. Liability for excise duty arises when goods are manufactured or produced in India and the manufacturer or producer is responsible for paying the duty. Valuation and duty rates can vary based on specific good characteristics or an ad valorem percentage of the goods' value.
The document provides an introduction and overview of the Central Sales Tax Act of 1956 in India. Some key points:
1. CST is levied by the central government but administered and collected by state governments. It applies to inter-state trade or commerce between registered dealers.
2. The tax is collected by the state from which the goods are sold or dispatched. Registered dealers must file CST returns with the notified authority in their registered state.
3. The Act establishes different tax rates for declared goods versus other goods and provides for voluntary or compulsory dealer registration, tax assessment and collection procedures, exemptions, and penalties for non-compliance.
The document discusses Goods and Services Tax (GST) composition scheme in India, which provides a simplified tax structure for small taxpayers. Key points include:
1) The composition scheme is optional for taxpayers with annual turnover up to Rs. 50 lakhs and requires paying a flat rate of tax instead of filing regular returns.
2) Taxpayers in the composition scheme pay taxes quarterly at rates between 1-5% depending on the business and file simplified annual returns.
3) Businesses can exit the composition scheme if their turnover exceeds limits or if they are no longer eligible, and must then start filing regular returns and claiming input tax credits.
The Central Sales Tax Act, 1956 provides the legal framework for levying and collecting tax on the sale of goods in the course of inter-state trade or commerce in India. Some key aspects include:
1. It defines terms like "sale", "declared goods", "place of business", and categorizes dealers as registered or unregistered.
2. The Act determines when a sale occurs within a state or inter-state and assigns an "Appropriate State" to administer the tax.
3. It empowers the central government to levy tax according to the tax rates of the Appropriate State and provides for the distribution of tax revenues among states.
This document provides information about various direct and indirect taxes in India. It begins with defining the key differences between direct and indirect taxes such as who bears the tax burden and issues of tax evasion. It then discusses some major direct taxes like income tax and indirect taxes like excise duty, customs duty, sales tax etc. It also explains the concepts of Central Sales Tax (CST), Value Added Tax (VAT), Modified Value Added Tax (MODVAT) and Central Value Added Tax (CENVAT) and provides details about their rates and rules. In conclusion, it summarizes the obligations of manufacturers producing both taxable and exempted goods under CENVAT rules.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods. It applies only to sales that involve the movement of goods between states and not on intra-state sales. Under the CST Act, any dealer involved in inter-state trade must register and pay tax. The Act provides a framework for determining whether a sale constitutes inter-state trade and for the levy, collection, and distribution of CST.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods between Indian states, with various forms like Form C and Form E used to document inter-state sales and claim lower CST rates; the tax collected is given to the state where the goods were sold. Certain goods like cereals, coal, and sugar are considered "declared goods" subject to lower CST rates compared to other goods.
An excise duty is a tax on goods produced within a country, as opposed to customs duties on imported goods. It is levied on the production or sale of goods and is a source of government revenue. To be subject to excise duty, goods must be movable, marketable, and mentioned in the Central Excise Tariff Act. There are basic, special, and additional excise duties charged at different rates. Liability for excise duty arises when goods are manufactured or produced in India and the manufacturer or producer is responsible for paying the duty. Valuation and duty rates can vary based on specific good characteristics or an ad valorem percentage of the goods' value.
The document provides an introduction and overview of the Central Sales Tax Act of 1956 in India. Some key points:
1. CST is levied by the central government but administered and collected by state governments. It applies to inter-state trade or commerce between registered dealers.
2. The tax is collected by the state from which the goods are sold or dispatched. Registered dealers must file CST returns with the notified authority in their registered state.
3. The Act establishes different tax rates for declared goods versus other goods and provides for voluntary or compulsory dealer registration, tax assessment and collection procedures, exemptions, and penalties for non-compliance.
The document discusses Goods and Services Tax (GST) composition scheme in India, which provides a simplified tax structure for small taxpayers. Key points include:
1) The composition scheme is optional for taxpayers with annual turnover up to Rs. 50 lakhs and requires paying a flat rate of tax instead of filing regular returns.
2) Taxpayers in the composition scheme pay taxes quarterly at rates between 1-5% depending on the business and file simplified annual returns.
3) Businesses can exit the composition scheme if their turnover exceeds limits or if they are no longer eligible, and must then start filing regular returns and claiming input tax credits.
The Central Sales Tax Act provides principles for determining inter-state sales and levies tax on sales occurring during inter-state trade. It aims to regulate state sales taxes on declared goods moving between states. Only movable property is considered goods under the Act. A sale involves the transfer of property in goods for consideration, excluding transfers like mortgages or pledges where ownership is not passed. Various transactions like hire purchases or barter trades are included in the definition of sale.
Value added tax (VAT) is a multi-point tax collected on value addition at different stages of sale. State VAT laws are enacted based on a white paper from the empowered committee of state finance ministers that provided the basic design. While the basic design is harmonized, states have freedom for variations consistent with the design. The purpose of VAT introduction was to harmonize tax structures across states and rationalize the overall tax burden.
The Central Excise Act of 1944 establishes an excise tax on goods manufactured in India. The tax is collected by the manufacturer at the time of production. The key points of the act are: 1) It levies a tax called Central Value Added Tax (CENVAT) on most goods based on schedules set by other acts. 2) It defines valuation methods, exemptions, and defines excisable goods. 3) It establishes offenses for non-compliance and associated penalties like fines and imprisonment. 4) It provides the power for the government to exempt some industries and refund excess duty paid with interest.
This document discusses various indirect taxes in India including central sales tax, value added tax, central excise duty, and customs duty. It defines key terms related to these taxes such as incidence and impact of direct vs indirect taxes. It also covers the classification of taxes, authorities that levy different taxes, taxable events, and calculation of taxes. The key highlights are that indirect taxes are imposed on goods and services while direct taxes are imposed on individuals, and indirect tax burden can be shifted to consumers.
Composition Scheme in Revised GST Model Law
Eligibility & Conditions for Composition Scheme in GST Law
Rate of Tax in Composition Scheme
Restrictions to opt Composition Scheme
Return Form & Due dates in Composition Scheme
Late fees
The document discusses key aspects of the Central Sales Tax Act of 1956 in India. It provides definitions for key terms like central sales tax, inter-state sale, intra-state sale. It explains the types of registrations required under the act and the documentation involved. It describes what constitutes an inter-state sale under sections 3a and 3b of the act. It also summarizes provisions around deemed exports, imports, and stock transfers between branches. Various forms prescribed under the act are also listed.
The document discusses customs duties in India. It outlines that [1] customs duties are levied on imports and exports according to the Customs Act of 1962 and Customs Tariff Act of 1975, [2] basic customs duty is charged on all imported goods at rates specified in the Customs Tariff Act, and [3] additional duties include an additional countervailing duty equal to internal excise duties and an education cess.
This document provides an introduction and overview of the Central Sales Tax Act of 1956 in India. Some key points:
- The Act was introduced to provide legislation authorized by amendments to the Indian Constitution regarding taxation of inter-state sales and imports/exports.
- It aims to enable state governments to collect additional revenues by taxing previously untaxed inter-state transactions.
- The Act establishes principles for determining when a sale occurs in inter-state commerce versus within a state, and for goods imported/exported.
- It allows state governments to impose and collect tax on inter-state sales on behalf of the central government. Certain goods can be declared as of special importance to inter-state trade and their taxation
Income tax is an important source of revenue for the central government in India. It is levied on the total taxable income of individuals and companies in the previous financial year, as per the tax rates and slabs applicable for the current year. The Income Tax Department operates under the Central Board of Direct Taxes and the Ministry of Finance to assess, collect and enforce income taxes as outlined in the Income Tax Act of 1961. The Act defines key terms related to income tax calculation and assessment such as assessee, income sources, deductions, taxable income and exemptions.
The CST Act of 1956 introduced taxes on inter-state sales and purchases of goods in India, including sales in the course of import or export. Under the CST Act, the nature of a sale is determined based on three situations: when a sale occurs during import/export, outside a state, or during import/export. For a sale to be considered inter-state, two conditions must apply: it must involve the sale of goods, and the movement of those goods between states as part of the sale contract. The central government makes rules on taxes for inter-state and import/export sales, while state governments can levy taxes on intra-state sales.
Composition Scheme Registration Invoicing Returns Payment of Tax under GST.GST Law India
The following presentation focuses on Composition Scheme under GST, how Registration under composition scheme is to be done, invoicing, filing of returns and how is to be paid under this scheme.
- Value Added Tax (VAT) is calculated as the difference between tax paid on sales and tax paid/payable on purchases within West Bengal during a tax period. It provides a set-off for tax paid on inputs against tax payable on outputs.
- Under VAT, existing dealers and new dealers exceeding certain turnover thresholds must register and pay VAT. All registered dealers are given an 11-digit Taxpayer Identification Number (TIN).
- VAT rates range from 1% to 12.5% for most goods. Exports and sales to special economic zones are zero-rated while some goods are exempted. Dealers have options to pay compounded rates in some cases.
CENVAT is an input duty credit scheme designed to reimburse manufacturers for duties paid on inputs. It prevents cascading of duties on final products. CENVAT covers most inputs and capital goods, and applies across India except Jammu and Kashmir. Under CENVAT, manufacturers can claim credit for eligible duties paid when clearing final products. The CENVAT Credit Rules outline provisions for availing, transferring, and recovering credit, as well as penalties for non-compliance.
An overview of our organisation, nature of services offered by us in the field of Works contract, scope of tax planning in Inter-state works contract and an expertise solution to multi state VAT complexities under works contract. Some of the Organizations to whom we have rendered our Services. Our contact details.
The document discusses key aspects of Pakistan's Sales Tax Act of 1990. It defines important terms like input tax, output tax, taxable supply, zero-rated supply, and exempt supply. It also explains the differences between zero-rated and exempt supplies. Furthermore, it provides an example to illustrate how sales tax is calculated at different stages of the supply chain from manufacturer to retailer to customer.
MVAT is a system of indirect taxation introduced in Maharashtra as a replacement for sales tax. It is a tax added at each stage of production and distribution, which is ultimately passed on to the consumer. VAT aims to create a uniform, transparent, and globally accepted tax structure. It benefits consumers, businesses, and the government. VAT rates in Maharashtra range from 0% to 20% depending on the good or service. MVAT applies to all dealers and importers whose annual sales or purchases exceed certain thresholds.
This document discusses sales tax and customs duty in India. It provides details on:
1) Sales tax is a tax paid to the government for the sale of certain goods and services, while use tax is paid directly by consumers. Sales tax in India is governed by the Government of India Act of 1935.
2) Customs duty is governed by the Customs Act of 1962 and is levied as a percentage on the assessed value of imported or exported goods. It has objectives like restricting imports to preserve foreign exchange and protecting domestic industry.
3) There are different types of customs duties including basic duty, countervailing duty, and protective duties. Importers are liable to pay duties once goods enter territorial waters
VAT (value added tax) has replaced sales tax in India, including in Maharashtra, to establish a uniform, transparent taxation system. VAT is collected from producers and sellers on the incremental value added at each stage of production and distribution. In Maharashtra, VAT is governed by the MVAT Act and applies to the sale of goods at rates from 1-20% according to schedules. Key VAT concepts include the definition of goods, dealers, importers, and sales/purchase prices. Manufacturers and businesses with over 1 lakh annual sales or 10,000 rupees of taxable purchases/sales annually must register and file VAT returns electronically monthly, quarterly, or half-yearly.
MVAT (Maharashtra Value Added Tax) is a multi-stage tax system applied to sales at each stage of production and distribution. VAT aims to tax value addition at each stage, allowing businesses to claim credit for taxes paid on purchases. The key aspects covered are registration limits, tax rates, forms for filing returns, payment due dates, input tax credit provisions, and penalties for non-compliance.
B.com(hons) indirect tax - central excise notesPawan Sehrawat
Central excise duty is levied on goods manufactured in India. The key points are:
1. Excise duty is governed by the Central Excise Act 1994 and is normally paid by the manufacturer at the time goods are removed from the factory.
2. Excise duty can be a basic rate of 16% or a special additional duty specified for certain goods. Duty is determined based on the transaction value or MRP of goods.
3. Manufacture is defined broadly and includes any process that produces a marketable good. The taxable event is manufacture of excisable goods in India.
The document discusses factors that affect indirect tax decision making such as whether taxes are creditable, the nature of business, inputs, outputs, location, and concessions. It outlines the nature of various central and state taxes, explaining which are creditable and not creditable. Key considerations for decision making include the seller/buyer status, value addition in the supply chain, and available exemptions or schemes. Formal registration and documentation are also important.
The Central Sales Tax Act provides principles for determining inter-state sales and levies tax on sales occurring during inter-state trade. It aims to regulate state sales taxes on declared goods moving between states. Only movable property is considered goods under the Act. A sale involves the transfer of property in goods for consideration, excluding transfers like mortgages or pledges where ownership is not passed. Various transactions like hire purchases or barter trades are included in the definition of sale.
Value added tax (VAT) is a multi-point tax collected on value addition at different stages of sale. State VAT laws are enacted based on a white paper from the empowered committee of state finance ministers that provided the basic design. While the basic design is harmonized, states have freedom for variations consistent with the design. The purpose of VAT introduction was to harmonize tax structures across states and rationalize the overall tax burden.
The Central Excise Act of 1944 establishes an excise tax on goods manufactured in India. The tax is collected by the manufacturer at the time of production. The key points of the act are: 1) It levies a tax called Central Value Added Tax (CENVAT) on most goods based on schedules set by other acts. 2) It defines valuation methods, exemptions, and defines excisable goods. 3) It establishes offenses for non-compliance and associated penalties like fines and imprisonment. 4) It provides the power for the government to exempt some industries and refund excess duty paid with interest.
This document discusses various indirect taxes in India including central sales tax, value added tax, central excise duty, and customs duty. It defines key terms related to these taxes such as incidence and impact of direct vs indirect taxes. It also covers the classification of taxes, authorities that levy different taxes, taxable events, and calculation of taxes. The key highlights are that indirect taxes are imposed on goods and services while direct taxes are imposed on individuals, and indirect tax burden can be shifted to consumers.
Composition Scheme in Revised GST Model Law
Eligibility & Conditions for Composition Scheme in GST Law
Rate of Tax in Composition Scheme
Restrictions to opt Composition Scheme
Return Form & Due dates in Composition Scheme
Late fees
The document discusses key aspects of the Central Sales Tax Act of 1956 in India. It provides definitions for key terms like central sales tax, inter-state sale, intra-state sale. It explains the types of registrations required under the act and the documentation involved. It describes what constitutes an inter-state sale under sections 3a and 3b of the act. It also summarizes provisions around deemed exports, imports, and stock transfers between branches. Various forms prescribed under the act are also listed.
The document discusses customs duties in India. It outlines that [1] customs duties are levied on imports and exports according to the Customs Act of 1962 and Customs Tariff Act of 1975, [2] basic customs duty is charged on all imported goods at rates specified in the Customs Tariff Act, and [3] additional duties include an additional countervailing duty equal to internal excise duties and an education cess.
This document provides an introduction and overview of the Central Sales Tax Act of 1956 in India. Some key points:
- The Act was introduced to provide legislation authorized by amendments to the Indian Constitution regarding taxation of inter-state sales and imports/exports.
- It aims to enable state governments to collect additional revenues by taxing previously untaxed inter-state transactions.
- The Act establishes principles for determining when a sale occurs in inter-state commerce versus within a state, and for goods imported/exported.
- It allows state governments to impose and collect tax on inter-state sales on behalf of the central government. Certain goods can be declared as of special importance to inter-state trade and their taxation
Income tax is an important source of revenue for the central government in India. It is levied on the total taxable income of individuals and companies in the previous financial year, as per the tax rates and slabs applicable for the current year. The Income Tax Department operates under the Central Board of Direct Taxes and the Ministry of Finance to assess, collect and enforce income taxes as outlined in the Income Tax Act of 1961. The Act defines key terms related to income tax calculation and assessment such as assessee, income sources, deductions, taxable income and exemptions.
The CST Act of 1956 introduced taxes on inter-state sales and purchases of goods in India, including sales in the course of import or export. Under the CST Act, the nature of a sale is determined based on three situations: when a sale occurs during import/export, outside a state, or during import/export. For a sale to be considered inter-state, two conditions must apply: it must involve the sale of goods, and the movement of those goods between states as part of the sale contract. The central government makes rules on taxes for inter-state and import/export sales, while state governments can levy taxes on intra-state sales.
Composition Scheme Registration Invoicing Returns Payment of Tax under GST.GST Law India
The following presentation focuses on Composition Scheme under GST, how Registration under composition scheme is to be done, invoicing, filing of returns and how is to be paid under this scheme.
- Value Added Tax (VAT) is calculated as the difference between tax paid on sales and tax paid/payable on purchases within West Bengal during a tax period. It provides a set-off for tax paid on inputs against tax payable on outputs.
- Under VAT, existing dealers and new dealers exceeding certain turnover thresholds must register and pay VAT. All registered dealers are given an 11-digit Taxpayer Identification Number (TIN).
- VAT rates range from 1% to 12.5% for most goods. Exports and sales to special economic zones are zero-rated while some goods are exempted. Dealers have options to pay compounded rates in some cases.
CENVAT is an input duty credit scheme designed to reimburse manufacturers for duties paid on inputs. It prevents cascading of duties on final products. CENVAT covers most inputs and capital goods, and applies across India except Jammu and Kashmir. Under CENVAT, manufacturers can claim credit for eligible duties paid when clearing final products. The CENVAT Credit Rules outline provisions for availing, transferring, and recovering credit, as well as penalties for non-compliance.
An overview of our organisation, nature of services offered by us in the field of Works contract, scope of tax planning in Inter-state works contract and an expertise solution to multi state VAT complexities under works contract. Some of the Organizations to whom we have rendered our Services. Our contact details.
The document discusses key aspects of Pakistan's Sales Tax Act of 1990. It defines important terms like input tax, output tax, taxable supply, zero-rated supply, and exempt supply. It also explains the differences between zero-rated and exempt supplies. Furthermore, it provides an example to illustrate how sales tax is calculated at different stages of the supply chain from manufacturer to retailer to customer.
MVAT is a system of indirect taxation introduced in Maharashtra as a replacement for sales tax. It is a tax added at each stage of production and distribution, which is ultimately passed on to the consumer. VAT aims to create a uniform, transparent, and globally accepted tax structure. It benefits consumers, businesses, and the government. VAT rates in Maharashtra range from 0% to 20% depending on the good or service. MVAT applies to all dealers and importers whose annual sales or purchases exceed certain thresholds.
This document discusses sales tax and customs duty in India. It provides details on:
1) Sales tax is a tax paid to the government for the sale of certain goods and services, while use tax is paid directly by consumers. Sales tax in India is governed by the Government of India Act of 1935.
2) Customs duty is governed by the Customs Act of 1962 and is levied as a percentage on the assessed value of imported or exported goods. It has objectives like restricting imports to preserve foreign exchange and protecting domestic industry.
3) There are different types of customs duties including basic duty, countervailing duty, and protective duties. Importers are liable to pay duties once goods enter territorial waters
VAT (value added tax) has replaced sales tax in India, including in Maharashtra, to establish a uniform, transparent taxation system. VAT is collected from producers and sellers on the incremental value added at each stage of production and distribution. In Maharashtra, VAT is governed by the MVAT Act and applies to the sale of goods at rates from 1-20% according to schedules. Key VAT concepts include the definition of goods, dealers, importers, and sales/purchase prices. Manufacturers and businesses with over 1 lakh annual sales or 10,000 rupees of taxable purchases/sales annually must register and file VAT returns electronically monthly, quarterly, or half-yearly.
MVAT (Maharashtra Value Added Tax) is a multi-stage tax system applied to sales at each stage of production and distribution. VAT aims to tax value addition at each stage, allowing businesses to claim credit for taxes paid on purchases. The key aspects covered are registration limits, tax rates, forms for filing returns, payment due dates, input tax credit provisions, and penalties for non-compliance.
B.com(hons) indirect tax - central excise notesPawan Sehrawat
Central excise duty is levied on goods manufactured in India. The key points are:
1. Excise duty is governed by the Central Excise Act 1994 and is normally paid by the manufacturer at the time goods are removed from the factory.
2. Excise duty can be a basic rate of 16% or a special additional duty specified for certain goods. Duty is determined based on the transaction value or MRP of goods.
3. Manufacture is defined broadly and includes any process that produces a marketable good. The taxable event is manufacture of excisable goods in India.
The document discusses factors that affect indirect tax decision making such as whether taxes are creditable, the nature of business, inputs, outputs, location, and concessions. It outlines the nature of various central and state taxes, explaining which are creditable and not creditable. Key considerations for decision making include the seller/buyer status, value addition in the supply chain, and available exemptions or schemes. Formal registration and documentation are also important.
This document discusses opportunities for Certified Management Accountants (CMAs) in the field of indirect taxation in India. It notes that the Indian government's expected revenue from indirect taxes has been steadily increasing. CMAs can play a vital role in areas like compliance, advisory services, tax planning and litigation related to various indirect taxes such as customs, excise, service tax and value-added tax (VAT). The document provides details on the roles and certifications that CMAs are authorized for in each of these tax domains. It also lists the states in India where CMAs can conduct VAT audits, including the states, turnover limits, time limits and required forms.
This document discusses various types of taxes in India including direct taxes, indirect taxes, customs duty, and excise duty. It provides details on the collection and growth of indirect taxes like customs, central excise, and service tax between 2011-12 and 2012-13. Similarly, it mentions the collection and growth of direct taxes like corporate tax and income tax during the same period. Charts are included to illustrate the percentage growth of these taxes over the years. The document also discusses the classification of taxes under the Indian constitution and the laws governing customs duty and excise duty in India. Key aspects like charging of duty, scope, and basic concepts are explained for customs duty and excise duty.
This document is a project report submitted by a student named Vivek Shriram Mahajan to the University of Mumbai for their M.Com program. The report includes an introduction to auditing, the history of auditing, principles of auditing, types of audits, features of company accounts, objectives of a company audit, and a conclusion. It covers topics like the definition of auditing, principles like integrity and independence, types of audits, requirements for company financial statements, and the purpose of a company audit.
- Income from other sources is a residual head of income that covers any income that does not fall under the other four heads of income (salary, house property, business/profession, capital gains).
- Some examples included under this head are dividend income, interest income, rental income from machinery/furniture, winnings from lotteries, gifts received without consideration.
- Standard deductions are available for repairs, insurance, depreciation of assets let out on rent. Interest received on securities and specific exempt categories are not taxed under this head.
Central excise duty is payable on goods before they are removed from the place of manufacture based on the assessable value determined by a central excise officer. The central excise act of 1944 and tariff act of 1985 along with rules issued by the central government and its notifications are the sources of central excise law. Goods covered under central excise include alcoholic liquors, opium, narcotic drugs, and other manufactured or produced goods except those exempted. There are two schedules under central excise - Schedule I covers duties determined on an ad valorem basis according to the tariff, while Schedule II covers specific uniform rates of 8% and 16%.
Sunita Kumari Yadav completed a project report on the company audit of Tirtharoop Electricals Pvt. Ltd. as part of her Master of Commerce program at the University of Mumbai. The report was submitted under the guidance of Mr. Gajanan Wader in 2013-2014. Sunita declared that the work was original and carried out under supervision. It was evaluated and accepted for internal assessment by internal and external examiners. The report included chapters on the company background, accounting records, audit standards and processes, analysis of accounts, and a draft audit report.
This document provides an overview of the Central Sales Tax in India. It discusses:
- The two types of sales taxes in India - intra-state VAT and inter-state CST. CST applies to inter-state movement of goods.
- The purposes of the CST Act, which are to formulate principles for determining inter-state sales, provide for collection and distribution of CST, and specify restrictions on state laws regarding certain goods.
- The structure of the CST Act, which contains 7 chapters and 26 sections covering charging of tax, exemptions, registration requirements, and dispute resolution between states.
- Key definitions and provisions around what constitutes an inter-state sale under sections 3
Basic Concepts of Central Sales Tax outlines key aspects of the CST including:
1) Inter-state sales are taxed by the central government while intra-state sales are taxed by state governments. Sales can be inter-state, during import/export, or intra-state.
2) States cannot discriminate between locally produced goods and goods brought from other states - the tax rate must be the same.
3) CST is paid at 2% if a C form is obtained, otherwise the rate matches the local sales tax rate of the state. Revenue from CST goes to the state where the goods originated.
4) The document discusses the definitions of inter-state sales,
The document provides an introduction to the Central Sales Tax (CST) Act of 1956 in India. Some key points:
- CST is levied by the central government but administered and collected by state governments. It is collected in the state from which goods begin inter-state movement.
- The Act divides goods into declared goods and other goods, with declared goods subject to a maximum tax rate of 4% that can only be levied once. Other goods face a tax rate of 10% or the state rate, whichever is higher.
- Registered dealers must file CST returns with the notified authority in their state. The authority assesses tax liability and orders refunds or penalties. Concess
1. The document discusses India's indirect tax system prior to GST, including central sales tax (CST), value added tax (VAT), and excise and service taxes. 2. CST was applied to inter-state sales of goods between Indian states and was collected by the originating state. VAT replaced state-level sales taxes and was applied to intra-state sales. 3. The document outlines the key aspects of CST, including applicable rates, transaction forms, declared goods, and exemptions.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods between Indian states, with various forms like Form C and Form D used to document inter-state sales and claim lower CST rates; the tax is collected by the state government where the goods were sold but retained by that state. Certain goods like cereals, coal, and sugar are considered "declared goods" subject to lower CST rates compared to other goods.
The document discusses foreign exchange control, including its definition, objectives, types, and conditions necessitating its use. It defines foreign exchange control as a system where governments intervene in foreign currency markets to influence exchange rates and how domestic buyers/sellers dispose of foreign funds. The key objectives are correcting balance of payments deficits, protecting domestic industries, and maintaining an overvalued exchange rate. The main types of control discussed are mild systems of exchange pegging and full control over all foreign exchange transactions. Exchange control is most effective under conditions of capital flight or temporary balance of payments issues.
There are no specific Iranian laws regulating payments to commercial intermediaries for military or non-military sales to the government. There are also no legal restrictions on discounts, fees, commissions or place/currency of payment for commercial intermediaries. Agreements with definite durations will expire according to their terms without additional procedures, but early termination may require foreseeable provisions. Commercial intermediaries are not considered employees or entitled to severance pay unless the relationship is deemed an employment under Iranian law.
This document provides an introduction and overview of the Maharashtra Value Added Tax Act of 2002. It discusses key aspects of VAT including:
- VAT is a multi-stage tax system that taxes value added at each stage of production and distribution, allowing tax credits for taxes previously paid.
- The Act replaced the earlier Bombay Sales Tax Act and came into effect on April 1, 2005, establishing the VAT system in Maharashtra.
- Registration is required if annual turnover exceeds Rs. 1 lakh for traders or Rs. 5 lakhs for manufacturers. Importers must register regardless of turnover.
- Goods are classified into Schedules A-E and taxed at rates from 0-20% depending
Based on the information provided:
1. Remittance of lottery winnings does not require approval under FEMA since it falls under current account transactions.
2. Payment of royalty up to 10% of local sales also does not require approval since it is considered as a normal business transaction. Royalty payments are generally allowed under the automatic route up to 10% of sales without any approval.
Hence, approval of the central government is not required in both the cases mentioned above under FEMA 1999. The transactions can be undertaken under the automatic route without any approval.
1. Sales taxes in India include the Central Sales Tax (CST) and Value Added Tax (VAT). CST is applied to inter-state sales while VAT is applied intra-state.
2. Under CST, the state from which the goods originate receives the tax revenue. CST rate is 2% if a C form is obtained, otherwise the state rate applies.
3. VAT aims to reduce the cascading effect of taxes. It provides input tax credit, so tax paid on inputs and capital goods can be credited against output tax. The difference is paid to authorities.
This document provides guidance on accounting for state-level value added tax (VAT) in India. It discusses the key features and objectives of VAT, including how input tax credits work and how they are accounted for. Specifically, it recommends that:
1) Input tax paid should be debited to a VAT credit receivable account, not inventory, as it is recoverable from tax authorities. As credit is used to offset output tax, the receivable is credited.
2) Estimates should be made to allocate input tax between taxable and exempt sales.
3) Capital good input tax eligible for immediate credit goes to a VAT credit receivable account, while deferred credit goes to a separate deferred account.
Foreign exchange controls are restrictions imposed by governments on buying and selling foreign currencies. They aim to control capital flows, maintain exchange rates, and pursue independent monetary policies. Common controls include restrictions on currency imports/exports, fixed exchange rates, and requiring currency exchanges to be done through government-approved entities. While many countries have liberalized controls in recent decades due to globalization, some still impose restrictions on capital flows and currency exchanges.
1) The document discusses equitable mortgages, stamp duty laws, and the Rajasthan Stamp Act of 1998. It defines an equitable mortgage as a mortgage secured by the lender taking possession of original property title documents.
2) Stamp duty is a tax payable on property transactions to the state government. The rates vary by state and property type. Under the Rajasthan Stamp Act, the principal mortgage instrument is charged duty, while linked documents are exempt.
3) Failure to pay proper stamp duty means documents cannot be admitted as evidence in court and penalties can be imposed at twice to ten times the deficient duty amount.
Colombia has a stable corporate legal framework that allows for flexible incorporation of investment vehicles like subsidiaries and branches. Foreign investors do not need a local partner to operate in Colombia and can fully own corporate entities as long as investments are properly registered. Incorporating a legal entity is generally simple and does not require prior government approval, except for certain regulated industries.
International trade between countries is regulated through a system of bilateral and multilateral agreements and treaties. The key objectives of modern multilateral trade regulation include expanding export and import opportunities while resolving trade disputes. The General Agreement on Tariffs and Trade (GATT) and its successor the World Trade Organization (WTO) established fundamental principles like non-discrimination between countries and transparency in trade rules. The Most Favored Nation (MFN) rule and National Treatment (NT) rule prohibit discrimination against imports through tariffs or internal taxes compared to domestic goods or those from other countries.
This document is an unofficial translation of the Federal Decree-Law No. (8) of 2017 on Value Added Tax in the United Arab Emirates. It establishes the scope and rate of VAT to be imposed on taxable supplies and imports at 5%. It defines key terms related to VAT and outlines rules for mandatory tax registration, including thresholds. It also covers deemed supplies, tax groups, and exemptions. The decree aims to impose VAT on the import and supply of goods and services in the UAE.
The document provides an overview of the Foreign Exchange Management Act (FEMA) of 1999 in India. It discusses that FEMA was introduced to replace the previous Foreign Exchange Regulation Act (FERA) of 1973 to facilitate external trade and payments. FEMA regulates all foreign exchange transactions in India and aims to promote an orderly foreign exchange market. It consolidates various rules and regulations pertaining to foreign exchange under the Reserve Bank of India. FEMA also introduced a more liberal and investor-friendly framework compared to the previous FERA.
The Foreign Exchange Regulation Act (FERA) was passed in 1973 to strictly control foreign exchange transactions and minimize dealings in foreign exchange due to India's low foreign reserves. It assumed all foreign exchange belonged to the government. The Foreign Exchange Management Act (FEMA) replaced FERA in 1999 to relax controls and manage rather than regulate foreign exchange as India opened up. FEMA allowed more foreign capital transactions and separated current and capital account transactions, specifying permissible capital transactions.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
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at Integral University, Lucknow, 06.06.2024
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How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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How to Add Chatter in the odoo 17 ERP ModuleCeline George
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2. Central sales tax is an indirect
tax which levied by the central
government on the taxable
turnover of inter-state sale of
goods made by a registered
dealer during the prescribed
period in the course of his
business.
3. FEATURES OF CENTRAL SALES TAX
a. central sales is levied on inter state
sales of goods made by registered
dealers.
b. Central sales tax is levied at a
specified rate.
c. Central sales tax is not levied on sales
inside a state. It’s liable for local sales
tax.
4. d. Central sales tax is imposed by the central
government but it is collected by the state in which
movement of goods commences.
e. It’s administered by local sales tax authorities of
each state.
f. Eventhough it’s the revenue of the central
government the tax collected is retained by the state in
which it’s collected. The central government shall not
take central sales tax from states.
5. CENTRAL SALES TAX ACT -1956
Central sales tax Act was passed in the year 1956 to
levy central sales tax on inter sale of goods.
This Act came into force on 5th January, 1957 but
section. 6 of this Act was enforced from 1st July,
1957 and section. 15 was enforced from 1st
October, 1958.
6. Central sales tax Act envisages a single point levy
at the first point of inter-state sale.
Central sales tax Act 1956, makes provisions for
every few procedures and rules. In respect of
provisions like return, assessment, appeals etc.,
provisions of General sales tax law of the state
applies.
7. OBJECTIVES OF CENTRAL SALES TAX ACT, 1956
Formulating principles for determining when a sale
or purchase of goods takes place in the course of
inter-state trade or commerce or outside a state.
Formulating principles for determining when a sale
or purchase of goods takes place in the course of
import into or export from India.
8. To declare certain goods to be of special importance
in inter-state traders commerce.
To provide for the levy, collection ad distribution of
taxes on sales of goods in the course of inter-state
trade or commerce.
To specify the restrictions and conditions to which
state law in imposing taxes on the sale or purchases of
such goods of special importance shall be subject.
9. SCOPE OF THE ACT
The Central Sales Tax Act, 1956 deals
with inter-State sales(Sec.3), sale or purchase
of goods taking place outside a State (sec.4),
sale of purchase in the course of export and
import (Sec.5), liability and charge to sales tax
(Sec.6), registration of dealers (Sec.7),
determination of taxable turnover (Sec.8), levy
and collection of tax (Sec.9), offences (Sec.10 to
12), declared goods (Sec.14 and 15).
11. It has already been defined that the term ‘Sale’
means any transfer of property in goods by one
person to another for cash or deferred payment
or for any other valuable consideration and
includes a transfer of goods on the hire-purchase
or any other system of payment by installments,
but does not include a mortgage or hypothecation
of, or a charge or pledge on goods.
While tax on inter-state sale is levied by the
Central Government, tax on intra-state sale is
levied by the State Government of the state in
which the sale takes place.
12. INTER-STATE SALE
Sec.3 of the CST Act, 1956 has defined inter-State sale or
purchase as follows;
“A sale or purchase of goods shall be deemed to take place in the
course of inter-State trade or commerce if the sale or purchase.
a) Occasions the movement of goods from one state to another, or
b) Is effected by transfer of documents of title to the goods during
their movement from one State to another”
A careful scrutiny of the above definition would reveal that
inter-state sale should occasion the movement of goods from one
state to another. It can also take place by transfer of documents of
title to the goods during their movement from one state to
another.
13. FEATURES OF INTER -STATE SALE
The important essential or feathers of an inter-state sale are
enumerated below:
o There should be an agreement to sale containing a stipulation
in respect of movement of goods from one state to another.
o There should be physical movements of goods from one state to
another.
o Such movement of goods must be the result of a convent or
incidental to the contract of sale.
o It’s not relevant in which state the property in the goods passes.
o Concluded sale should take place in a State that is different from
the state from which movement of goods.
14. INTRA-STATE SALE
A sale takes place inside Tamilnadu. It should be intra-
state sale only. It should not be inter-state sale. This sale taking
place inside Tamilnadu is outside Kerala, Karnataka, Andhra
Pradesh, etc., Thus sale inside one state is outside all other states.
The other states have no nexus with the sale and hence they cannot
levy tax on such sales.,
15. SALE IN THE COURSE OF IMPORT/EXPORT
The sale is effected by seller and he is not connected with the export
of those goods which actually takes place, it is known as ‘sale for export’. In
this case the seller may not be definite about the goods he sold to the buyer
which are meant for export. The sale is not linked to export.
In the case of sale in the course of export, the seller would be definite
that the goods sold to the buyer are mainly for export. In other words, the
seller and the buyer both have an intention to export, an obligation to export
and there is an actual export goods. In other words, the sale is inextricably
connected to export. The obligation to export may arise from any law,
contract or from the nature of transaction itself.
16. DISTINCTION BETWEEN INTER-STATE & INTRA-STATE
1. This is governed by CST Act, 1. This is governed by respective
1956. State Acts.
2. CST rates are uniform thought 2. State sales tax rates are different
the country. from state to state.
3. For inter-state trade 3. The rates are determined by the
transactions, the rates are levied respective State Government.
by the Central Government.
4. Possibilities are remote to pay 4. There may be necessities to pay
sales tax at more than one stage. sales tax at more than one stage.
5. In this case, CST is levied when 5. In this case local tax is levied
goods move from state to when sale/purchase takes place
another State. within the state.
6. Thoroughly inter-state trade, 6. Under intra-state trade, there is
there is possibility for no possibility for export/import
export/import activities. activities.
17. SECTIONS OF CENTRAL SALES TAX ACT, 1956
The different sections of the central sales tax Act 1956 have been given below;
Section Deals with
Sec.1 Short title, extent and commencement .
Sec.2 Definitions
Sec.3 When is a sale or purchase of goods said to take place in the
course of inter-state trade or commerce.
Sec.4 When is a sale or purchase of goods said to take place outside a
state.
Sec.5 When is a sale or purchase of goods said to take place in the
course of import or export.
Sec.6 Liability to tax on inter-state sales.
Sec.6A Burden of proof etc., in case of transfer of goods claimed
otherwise than by of sale.
18. Sec.7 Registration of dealers.
Sec.8 Rates of tax on sales in the course of inter-state trade or
commerce.
Sec.8A Determination of turnover
Sec.9 Levy and collection of tax and penalties.
Sec.9A Collection of tax to be only by registered
Sec.10 Penalties.
Sec.10A Imposition of penalty in lieu of prosecution
Sec.11 Cognizance of offences.
Sec.12 Indemnity (Legal exemption from penalties)
Sec.13 Power to make rules.
Sec.14 Certain goods to be of special importance in inter-state trade or
commerce (Declared goods)
Sec.15 Restrictions and conditions in regard to tax and sale or purchase
of declared goods with in a state.
20. IMPORTANT DEFINITIONS
1. APPROPRIATE STATE(SEC.2(A)
“Appropriate State” in relation to a dealer means a state in
which a dealer has one or more places of business.
When the dealer has more than one place of business situated
in different states, each of these states will be treated as “appropriate
state”. Only an appropriate state can collect, retain and administer
central sales tax.
In relation to a dealer who has one or more places of business
situated in the same state-that state. That is, if a dealer has one or
more places of business situated in the same or a particular state then
that state is considered, as the “Appropriate State” to him for the tax
purpose.
21. BUSINESS (SEC.2(AA))
“Business” includes (i) any trade, commerce or
manufacture or any adventure or concern in the nature of trade,
commerce, or manufacture, whether or not Such trade, commerce,
manufacture, adventure is carried on with a motive to make Gift
or profit and whether or not any profit or gain accrues from such
trade, commerce, manufacture, adventure or concern and
(ii) Any transaction in connection with or incidental or
ancillary to such Trade, manufacture, adventure or concern.
22. CROSSING THE CUSTOMERS FRONTIERS OF INDIA
(SEC.2(AB))
“Crossing the customs frontiers of India”
means crossing the limits of the area of a customs
station in which imported goods are ordinarily
kept before clearance by customs authorities.
For the purpose of this clause “customs
station” and “customs authorities” shall have the
same meanings as in the customs Act, 1962.
23. DEALER (SEC.2(B))
“Dealer means any person who carries on whether
regularly or otherwise, the business of buying, selling
supplying or distributing goods, directly or indirectly for cash
or for deferred payment, or for commission, remuneration or
other valuable consideration.
KINDS OF DEALER:
A dealer may be
o a local authority
o A body corporate
o A company
o Any co-operative society or other society
o Club
24. o Firm
o Hindu undivided family
o Other association of persons
o Factor
o Broker
o Commission agent
o Del credere agent
o Any other mercantile agent
o An auctioneer
DECLARED GOODS (SEC.2(C))
“ Declared goods” means goods declared u/s 14 to be of
special importance in inter-state trade or commerce.
25. GOODS (SEC.2(D)
“Goods” include
- all materials
- articles
- commodities
- all other kinds of “movable property”
MOVABLE PROPERTY:
Movable property is a property which may be lifted,
carried, drawn or conveyed or made to change the place or
position in one way or the other.
26. THE WORD “GOODS” DOES NOT INCLUDE:
- News papers
- auctionable claims
- stocks
- securities
- money
REGISTERED DEALER (SEC.2(F))
“Registered dealer” means a dealer who is
registered for inter-state sales tax under Section. 7 of the
central sales tax Act, 1956.
27. SALE (SEC.2(G)
‘Sales’ means any transfer of property is goods by one
person to another for cash or for deferred payment or for any
other valuable consideration.
It includes a transfer of goods on the hire-purchase or
other system of payment by installment. It does not include a
mortgage or hypothecation of or a charge or pledge on goods.
SALE PRICE (SEC.2(H)
“Sale price” means the amount payable to a dealer as
consideration for the sale of any goods less any sum allowed as
cash discount according to the practice normally prevailing in
the trade, but inclusive of any sum charged for anything done by
the dealer in respect of the goods at the time of or before the
delivery there of other than the cost of freight or delivery or the
cost of installation in case where such cost in separately charged.
28. REGISTRATION OF DEALER (SEC.7)
REGISTRATION :
A dealer, liable to pay tax under Central sales tax Act, is
required to seek registration. Registration under Central sales tax Act is
required even if inter-state is of a very small quantum.
The central government has authorized state government to
prescribe state sales tax authorities for the purpose of registration.
Types of Registration:
These are two types of registration. They are
a) Compulsory registration
b) Voluntary registration
30. COMPULSORY REGISTRATION (SEC.7(1)
Compulsory registration is required if goods are sold
outside the state or if sale is made in inter-state trade or
commerce. There is no initial exemption and registration is
required even if sales are of very small amount.
VOLUNTARY REGISTRATION (SEC.7(2))
A dealer who has registered with state sales tax
authorities may voluntarily apply for registration under
central sales tax Act even if he is not liable to pay central sales
tax. It is called “Voluntary registration”.
It helps a dealer to make purchases in inter-state at a
4% concessional rate (by submitting ‘C’ form). Voluntary
registration is mainly useful when the dealer makes purchase
in inter-state but all his sales are within the state.
31. BENEFITS OF REGISTRATION
The following are the advantages of registration
INTER-STATE PURCHASE AT CONCESSIONAL RATE:
When an unregistered dealer makes inter-state
purchase of goods for resale/manufacturing, he is required to
pay 10% central sales tax. But a registered dealer can make
inter-state purchases at 4% concessional rate.
EXEMPTION ON SUBSEQUENT SALES:
Central sales tax Act provides a single point sales tax at
the point of first inter-state sale. All subsequent sales are exempt
in certain cases to avoid multiple tax incidence.
32. EFFECTS ON NON-REGISTRATION:
If a dealer does not get himself registered, he would
be subject to penalty under section. 10 of central sales tax
Act., 1956. The defaulters is punishable.
a) With simple imprisonment which extend upto 6 months or
b) With fine or
c) With both imprisonment and fine.
In case of continuing default, he is punishable with a
fine of Rs.50 per day till the default continues.
33. PROCEDURE FOR REGISTRATION
The following is the procedure for registration under
Central sales tax Act, 1956.
Procedure
To be followed by the To be followed by the
applicant registering authority.
PROCEDURE TO BE FOLLOWED BY THE APPLICANT:
A dealer, who wants to get himself registered under the
Central sales tax Act is required to take the following steps.1
1. Making application for registration
2. 2. Supplying adequate information
3. Paying fees for registration 4. Signing the application
5. Furnishing security for registration
34. MAKING APPLICATION FOR REGISTRATION :
Application for registration should be made by a
dealer who is seeking registration, in prescribed form ‘A’ as
per Central sales tax (Registration and turnover) rules. It
should be made to the notified authority.
TIME LIMIT:
For compulsory registration Within 30 days from
the date when dealer becomes
Liable to CST.
For Voluntary registration at any time.
35. SUPPLYING ADEQUATE INFORMATION :
The applicant should provide adequate information in the
application form such as
• The places of business within the state and in other
states.
• The date in which the business was started and the
date in which the first inter-state sale took place.
• Details about inter-state purchases.
• Accounting period to be followed.
PAYING FEES FOR REGISTRATION:
In order to get registration under the Central Sales tax
Act, the applicant should pay application fee of Rs. 25/- in the
form of court fee stamps.
36. SIGNING THE APPLICATION:
The application should be signed by the proprietor of the
business.
If the applicant is by Application should be signed by
• Partnership firm Any one of the partner
• Hindu Undivided family (HUF) Karta
• Association of persons Principal Officer
• Company Director/Principal Officer
• Government Authorized officer
37. FURNISHING SECURITY FOR REGISTRATION :
Before granting registration, the registering
authority may demand security from the applicant. The
applicant should furnish the demanded security.
FROM OF SECURITY:
• Surety bonds
• Government securities
• Cash deposit
NUMBER OF REGISTRATION:
• When a dealer has more than one places of business with in a
state, only one registration is required.
• Additional places of business are endorsed on the certificate.
• If a dealer has places of business in different states, he has to
obtain separate registration in each state.
38. PROCEDURE TO BE FOLLOWED BY THE
REGISTERING AUTHORITY:
• Verifying the application
• Granting of registration
• Issuing certificate of registration.
VERIFYING THE APPLICATION:
Before granting registration, the registration authority
should verify whether
• The application has been made as per the provisions of the Act.
• The registration fee has been paid
• The information given in the application are true
• The demanded security has been furnished.
GRANTING OF REGISTRATION:
After verifying the application, the notified authority
may grant registration. If the authority is not satisfied, the
application may be rejected.
39. ISSUING CERTIFICATE OF REGISTRATION:
When the sales tax authority is satisfied that the
application is in conformity with the provisions of the central
sales tax Act, it shall grant certificate of registration to the dealer
in form ‘B’ specifying the class or classes of goods which may be
purchased at the concessional rate of tax.
If the certificate is lost, the notified authority will issue a
duplicate certificate after getting Rs. 5 in the form of court fee
stamps.
40. CANCELLATION OF REGISTRATION:
The notified authority may cancel the certificate of
registration issued to the dealer when,
• The business of the dealer comes to an end
• The dealer has ceased to exit
• The dealer commits default in furnishing the security as
required.
• The dealer fails to pay any tax or penalty payable under the
Act.
• The dealer misuses his registration to evade tax.
• The registering authority discovers any errors in the
certificate
• The dealer requests the authority to cancel the certificate
(after paying all dues).
Before cancelling the registration, due notice must be given to
the dealer.