Is it cat always lesser than local tax / vat ?

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Is it CST always lesser than local tax / VAT of orgin state ?

i came to know , yes. but is it  mentioned any where in book or govt order / rule/ act  to refer to others ?

Replies (3)

No, its not mandatory.! its upto the types of goods and items which purchased or sold !

Yes it should be shown in the return seperately... in DVAT Return.

 

 

Regards

Piyush Tanwar

Article Assistant at Tiwari & Associates, Karol Bagh, New Delhi

Email - imcoolpiyush.tanwar @ gmail.com

Mobile - 09717468521

Dear Rajasekaran

 

As per CST rules the CST rate is lower of :

Local rate applicable or

CST @ 2%

 

oK...

sir but i red as follows : plz clarify 1. If local sales tax rate is nil, then the central sales tax rate will be Zero. Moreover, Form C or D is also not required. 2. Sec.8(2) provides that if certain goods are exempt generally from states sales tax, the central sales tax payable on such goods will be nil, even if goods are sold to unregistered dealer. BENEFIT OF UNCONDITIONAL EXEMPTION - SEC.8(2) Certain goods enjoy tax exemptions unconditionally under local state law. The exemptions may be total (i.e., zero tax) or partial (i.e. reduced rate of tax). The concession should be available unconditionally i.e. it should be enjoyable generally without any stipulations. Then the same concession is automatically enjoyable on ISS also (Even if the goods are sold to registered dealer or unregistered dealer). (E.g. There is no tax on sale of coconut to anyone inside Andhra Pradesh. The same concession automatically applies to CST. This means that in Andhra Pradesh there is no Central Sales Tax on coconuts. Suppose if, the exemption notification is as follows: Coconuts - No tax on sales, other than sales to oil mills. The exemption is conditional & hence the exemption will not apply to ISS).


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