Sales Tax Registration Services

Sales Tax Registration

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Sales tax is levied on the sale of movable goods. Most of the Indian States have replaced Sales tax with Value Added Tax (VAT) from 1 April 2005. VAT is imposed on goods only and not services and it has replaced sales tax. Other indirect taxes such as excise duty, service tax etc., are not replaced by VAT. VAT is implemented at the State level by State Governments. VAT is applied on each stage of sale with a mechanism of credit for the input VAT paid. There are four slabs of VAT:-


  0% for essential commodities.

  1% on bullion and precious stones.

  4% on industrial inputs and capital goods and items of mass consumption .

  All other items 12.5% .

  Petroleum products, tobacco, liquor etc., attract higher VAT rates that vary from State to State.

CST

CONSTITUTIONAL BACKGROUND

The concept of Central Sales Tax is closely related to the concept of taxation in the Constitution. Sales tax has come to play an increasing role in the fiscal system of modern States. Under the constitution, taxation of sale and purchase of goods is a State subject except sale or purchase of goods in the course of inter-state trade. In respect of inter-state sale or purchase of goods the Sale Tax is levied under provisions of CST, 1956 and the entire


MEANING OF CENTRAL SALES TAX

It is an Indirect Tax as the burden falls on the consumer. It is levied by Central Govt on taxable turnover of Inter-state sale of goods made by registered dealer in ordinary course of business.

 

APPLICABILITY OF CST ACT CST IS APPLICABLE ONLY WHEN FOLLOWING CONDITIONS ARE SATISFIED

1)There should be a Dealer

2)He should be a Registered Dealer under CST

3)He must carry on any business

4)Sale should take place in the course ofinter-state trade or commerce

5)Sale must be of goods defined under CST

 
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