Friday, 27 December 2019

Unit 12: Central Sales Tax

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Unit 12: Central Sales Tax

The rates of tax on declared goods are lower as compared to the rate of tax on goods in the second category.

The tax is levied under this act by the Central Government but, it is collected by that state government from where the goods were sold.

The tax thus collected is given to the same state government which collected the tax.

In case of union Territories the tax collected is deposited in the consolidated fund of India.

The rules regarding submission of returns, payment of tax, appeals etc. are not given in the act.

For this purpose, the rules followed by a state in respect of its own sales tax law shall be followed for purpose of this act also.

Even though the central sales tax has been framed by the central government but, the state governments are allowed to frame such rules, subject to such notification and alteration as it deem fit.

It is the aggregate of the sale prices received and receivable by the dealer in respect of sales of any goods in the course of inter-state trade or commerce made during a prescribed period.

Prescribed period is the period in which sales tax return is filed.

Ascertained goods: It means goods are segregated out of the whole lot which are intended to be sold.

Custom frontier: The limits of the area of customs station in which imported goods or export goods are ordinarily kept before clearance by customs authorities.

Hypothecation: It means a pledge without transferring the possession of goods to the lender.

The owner of goods can use his goods in the normal course of his business.

But, if the owner fails to repay the loan to the lender then lender can take possession of the hypothecated goods.

Pledge: It means transferring possession of goods to the lender in order to get loan.

Single Place of business: If a dealer has single place of business in the appropriate State and he is registered in that state, he shall apply to the sales tax authority of that state only for obtaining registration under central sales tax Act.

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