CENTRAL SALES TAX INDIA

Name: Md Shahid
Room :22
Roll :033
Assignment: Central Sales Tax

INTRODUCTION:

According to the article 265 of the constitution of India no tax of any nature can
be levied or collected by the central or State Governments except by the authority of law. The constitution of India vide entry no. 54 of the state list, gave power to the state legislature to levy sales tax on sale or purchase of goods other than newspapers, which takes place within the state. However, at that time the parliament was not empowered to levy any type of sales tax. Therefore, only statelegislature enacted state sales tax laws in their respective state for levy of sales tax on sale or purchase of goods other than newspapers.

Although, the State Government were empowered to levy and collect tax on salesmade within its own territory but there was no specific provisions of levying tax on sale and purchase having interstate composition. As a result, same goods came to be taxed by several states on the ground that one or more ingredient of sale was present in their state. This led to multiple levy of tax. There for central sales tax Act 1956 was enacted by the Parliament and received the assent of the president on 21.12.1956. Imposition of tax became effective from 01.07.1957.


IMPORTANT FEATURES OF THE ACT:

1.It extends to the whole of India.

2.Every dealer who makes an inter-state sale must be a registered dealer and
a certificate of registration has to be displayed at all places of his business.

3 There is no exemption limit of turnover for the levy of central sales tax.

4.Under this act, the goods have been classified as:
Ø Declared goods or goods of special importance in inter-state
trade or commerce and
Ø Other goods.
The rates of tax on declared goods are lower as compared to the rate of tax
on goods in the second category.

5.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.

6.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.

7.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.

IN THE COURSE OF INTER STATE TRADE:

A sale can be treated as an inter- state sale if, all the following conditions are
Satisfied:

1. Transaction is a Completed sale.

2.The contract of sale contains a condition for the movement of
goods from one state to another.

3.There should be physical movement of good from one state to
another
4.The sale concludes in the state where the goods are sent and that
state is different from the state from where the goods actually moved.

5.It is not necessary that sale precedes the inter- state movement of
goods, sale can be entered before or after the movement of goods.

6.It is immaterial in which state the ownership of goods passes from
seller to buyer.

LET US SUM UP:

Central sales tax is a tax imposed by central Government but collected by
appropriate Sate Government in the course of Inter-State trade or
commerce. There is no uniform central sales tax rates. Rates vary
depending upon the class of goods and type of person to whom it is sold.
Now, with the introduction of VAT. there will be gradual phasing out of
Central Sales Tax. Tax evasion on account of so called cash business will
be reduced to a greater extent. Further, there will be uniform rates for
goods all over the India.

Test matches

Largest margin of victory (by an innings)

Winner Margin Opposition Ground Match Date Scorecard
England inns & 579 runs v Australia The Oval 20 Aug 1938 Test # 266
Australia inns & 360 runs v South Africa Johannesburg 22 Feb 2002 Test # 1590
West Indies inns & 336 runs v India Kolkata 1 Dec 1958 Test # 463
Australia inns & 332 runs v England Brisbane 29 Nov 1946 Test # 279

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