What is central sales tax?
Central Sales tax refers to the tax levied on sales generated during inter-state trade and commerce in a country. It is an indirect, origin-based tax. … CST was collected as a percentage of the sale price of the commodity. The statute governing sales tax is Central Sales Tax Act, 1956.
What are the features of central sales tax?
The Features of Central Sale Tax are: It extends to the whole of India. Every dealer who makes inter-sate sale must be registered dealer and a certificate of registration has to be displayed at all places of his business. There is no exemption limit of turnover for the levy of Central Sale Tax.
What is CST with example?
CST is levied when the goods are transferred or at the time of generating invoice whichever is earlier. For example, if sale of goods is moved from Mumbai to Bangalore, CST is levied. The revenue collected as Value Added Tax VAT is meant for central government. The exempted goods are not charged CST.
What is levying CST exemption?
Any movement of goods otherwise than as sale, sent outside the state, is exempted from levy of CST. Examples of such Transactions are Consignment and Branch Transfers outside the state, Exports, Deemed Exports etc.
What is the difference between an excise tax and a sales tax?
Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate. … Note: Excise taxes are often subject to sales tax, so you can pay tax on tax.
What is central tax and state tax?
The Central Government of India levies taxes such as customs duty, income tax, service tax, and central excise duty. The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value added tax (VAT), state excise duty, land revenue and stamp duty.
What are the main principles of taxation?
In discussing the general principles of taxation, one must not lose sight of the fact that taxes must be administered by an accountable authority. There are four general requirements for the efficient administration of tax laws: clarity, stability (or continuity), cost-effectiveness, and convenience.
Why is it called Value Added Tax?
Value added tax is
a consumption tax because it is borne ultimately by the final consumer. It is not a charge on businesses. charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain.
What is full form CST?
CST full form means Central Standard Time and stands behind 6 hours behind Coordinated Universal Time. It is mainly observed in the regions of Central and North America.
What is CST in pharmacy?
ABSTRACT. Partially miscible liquids become more soluble with the increase in temperature and at a certain temperature they are completely miscible. This temperature is known as the critical solution temperature (CST) or consolute temperature. The temperature above the phase gets affected by the addition of impurities.
Is VAT and CST number same?
VAT and CST registration apply to all companies providing goods and/or services in India. The Value Added Tax (VAT) applies to goods or services provided within the state. Any goods or services provided between the state is Central Sales Tax (CST).
What is good under Central Sales Tax Act?
The CST Act, 1956 Act provides for declaration of certain goods to be of special importance in inter-State trade or commerce and lay down restrictions on the taxation of such items. The entire revenue accruing under levy of CST is collected and kept by the State in which the sale originates.
What are the goods under CST?
Goods of special importance
- Cereals i.e. paddy, rice, wheat, bajra, jowar, barley etc.
- Coal and coke in all forms excluding charcoal.
- Cotton in un-manufactured form but not cotton waste.
- Cotton fabrics, cotton yarn.
- Crude oil.
- Hides and skins.