Declaration Forms under CST Act,1956

Central Sales Tax (CST) is a tax on Sale levied by Central Government under the provisions of Central Sales Tax Act, 1957. As per the provisions of this Act, any movement of goods from one State to another on account of :-

(a)  sale/purchase, or

(b)  Transfer of document of Title to goods between two separate parties is considered as Interstate sale/purchase.

All such transactions are liable to CST.

Any movement of goods otherwise than as sale (i.e. stock transfer to Branch, Depot, Consignment Agent or for Job work etc) , sent outside the state , is exempted from levy of CST.

Any movement of goods, sent outside the country , is exempted from levy of CST. Example Exports, or Deemed Exports.

Also some of the Interstate transactions are exempted if goods are supplied to Special Economic Zones or to UN or Diplomatic missions etc.

The basic CST Rate as applicable to inter-state transactions is @2% but this basic rate or exemption from CST would apply if purchasing dealer issue the prescribed statutory forms to the selling dealer.

Some of the points relating to CST rates are as follows:

Input Tax Credit Provisions in brief- Bihar and Kerala

State	BIHAR  {Sec.16 / Rule 12,14,15,}	KERALA  {Sec.11,12,13 / Rule 12-A,12-C,13,14,15,46,47,47-A}
Full VAT Input Tax Credits - Eligibility / admissibility & purposes specified	On VAT-paid purchases upon receipt of Tax invoice; for Sale/resale of taxable goods in/from Bihar; for Capital goods for resale or manufacture of taxable goods; Use in manufacture / packing of taxable goods for sale	On ALL VAT-paid goods purchased, for purposes of Resale in/from Kerala, for use in works contracts, for use as input/capital goods in manufacture / processing of goods; for packing; for inter-State sale.

Input Tax Credit provisions in brief- Andhra Pradesh Assam

State	ANDHRA  PRADESH    {Sec.13,22,38 / Rule 16,20}	ASSAM  {Sec.11,14,15 / Rule 9,11,12}
Full VAT Input Tax Credits - Eligibility / admissibility & purposes specified	On ALL VAT-paid goods at point of purchase on receipt of Tax invoice during Tax period, if such goods are for use in business;                                 E.T. paid eligible for adjustment against output VAT.	On VAT-paid purchases in Tax period following after receipt of Tax invoice; for Sale/resale of taxable goods in/from Assam; for Capital goods for manufacture of taxable goods; Use in manufacture/packing of taxable goods for sale

Service Tax on services provided by directors to the Company

Reverse charge mechanism was introduced purposefully to cover unorganized sectors like GTA or cover small service providers because for them paying tax may not be a problem but understanding of legal provisions and then complying with those provisions could really have become difficult but now reverse charge has become fashion and government applying to any sector even those sector can understand the law and can manage as well. Reverse charge on legal service/ service by directors to the company are the best example where Government collecting tax on reverse charge basis while it should have been directly collected through these service providers themselves.

Amendment in service tax on construction , complex services

Amendment in service tax on construction , complex services

CBEC has amended Notification No. 26/2012- ST dated 20.06.2012 with a view to remove the ambiguity prevailing on the rate of abatement of service tax on construction of residential unit.