When a dealer is transferring goods to another state not as a result of sale but as stock transfer to any other place of his business ( branch, godown, warehouse etc.), then such transfer would not be liable for CST as per CST Act 1956. However, the burden of proving that the goods have not moved as a result of sale is on the dealer transferring such goods.
In this article, an effort has been made to understand the concept of Form ‘F’ and few related issues with regard...
Read moreFollowing are the goods specified u/s 8(3) of CST Act 1956 in respect of which an interstate sale to a registered dealer is liable to tax at concessional rates i.e. 2% or state rate whichever is lower, provided that the transactions are covered by Form C: a. For resale or
For use in the manufacturing or processing of goods for sale or
For use in the mining or
For use in the generation or distribution of electricity or any other form of power...
Exceptions to Restriction Under Rule 6
The cenvat credit on capital goods, inputs and input services for a manufacturer could be as high as 9% of the basic value of goods sold/ removed. This is about 75% of the normal rate of 12%. Some goods fall under the 6% rate where the credit would probably be more than the applicable rate. In case of high investment, high level of stocking, direct or indirect export, there could also be an accumulation of credits. This accumulated situation...
Read moreThe concept of Input Service Distributor (hereinafter in this article referred as “ISD”) is not new in Goods and Service Tax law. It carries the legacy from the Service Tax law.
1. The Concept
The need for ISD arose for providing a chance to the businesses who have multiple units in different locations to receive common invoice for the services attributable to different units at centralised location, in doing so the input credit is accumulated at the centralised unit. The ISD then...
Read moreWith an intention to ensure that lower rate of taxes are maintained on few specified goods which are of essential use of people, few goods have been considered to be of special importance under CST Act. Article 286(3)(a) of Constitution of India authorises Parliament to declare some goods as of ‘special importance’ and to impose restrictions and conditions in regard to power of States in regard to levy, rates and other incidence of tax on such goods.
What are declared...
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