Exempted good

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This query is : Resolved

om prakash sharma (Querist)

15 May 2008 Whether person can make interstate sale of exempted good without obtaining sale tax registration number from the sale tax department.

Please guide

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

15 May 2008 if the goods are tax free in shedual A then no sales tax number is required but if sales are exempted that is PSI sales then you will submit C form & paid txes in your state

om prakash sharma

om prakash sharma (Querist)

15 May 2008 One clarification is required -

It means seller is legally eligible to sale the good -interstate without obtaining the sale tax number, if buyer deposit the required tax in his state.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

15 May 2008 yes if goods are exempted & when intestate purchase is made then set off of input vat is not available

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

18 September 2008 Dealer is Liable for registration u/s. 7(1) of the CST Act only if he is liable to pay tax. In absence of any definition of 'liable to pay' , literal meaning of the phrase may be taken in to consideration.
Hence, a person can make interstate sale of exempted good without obtaining sale tax registration number from the sale tax department.
Whether buyer pay taxes or not in his state is not the look out of the seller.

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