SALES TAX

[abhishreshthaa]

SALES TAX /OUTPUT TAX

Sales tax is a tax which is payable on sales of goods. It covers al types of sales, normal, deemed sales, that is:

Transfer of property in goods, in terms of Sale of Goods Act (normal sale)

Work Contract

Lease

Hire purchase, installments, etc.


Any dealer engaged in the business, whose turnover exceeds the specified limit is liable to pay tax on sale or purchase of goods, in the course of the business.


The tax is payable on the turnover of sales and/or the turnover of purchase. But here there are certain exemptions i.e. there are certain sales and purchases, which are not liable to tax, like sales or purchases

 Outside the state; or

 In the course of import; or

 Exports outside India; or

 In the course of inter-state trade,

Are not liable to Tax.

The nature of above ale or purchase shall be determined as per the principals specified in sections 3, 4, and 5 of the CST Act. The tax would be charged on sale and purchase in the course of business but not on sale or purchase, other than in the course of business. There would be no tax charged on Gifts, Mortgage, hypothecation, etc.

The tax would be charged on the sale if the sale is within the state and the tax would be charged to a person who is a dealer and on movable property, which constitutes goods. There would be no tax charged on immovable property, excluded movable property.


The tax won’t be charged on sale if the sale takes place outside the state, sale in course of import and at the same time it won’t be charged to a person who is not a dealer.

 

[jitendra05]

SALES TAX /OUTPUT TAX

Sales tax is a tax which is payable on sales of goods. It covers al types of sales, normal, deemed sales, that is:

Transfer of property in goods, in terms of Sale of Goods Act (normal sale)

Work Contract

Lease

Hire purchase, installments, etc.


Any dealer engaged in the business, whose turnover exceeds the specified limit is liable to pay tax on sale or purchase of goods, in the course of the business.


The tax is payable on the turnover of sales and/or the turnover of purchase. But here there are certain exemptions i.e. there are certain sales and purchases, which are not liable to tax, like sales or purchases

 Outside the state; or

 In the course of import; or

 Exports outside India; or

 In the course of inter-state trade,

Are not liable to Tax.

The nature of above ale or purchase shall be determined as per the principals specified in sections 3, 4, and 5 of the CST Act. The tax would be charged on sale and purchase in the course of business but not on sale or purchase, other than in the course of business. There would be no tax charged on Gifts, Mortgage, hypothecation, etc.

The tax would be charged on the sale if the sale is within the state and the tax would be charged to a person who is a dealer and on movable property, which constitutes goods. There would be no tax charged on immovable property, excluded movable property.


The tax won’t be charged on sale if the sale takes place outside the state, sale in course of import and at the same time it won’t be charged to a person who is not a dealer.

Hey abhi, thanks for explaining about the sales tax and as we know that a sales tax is a tax paid out to a governing body for the sales of a number of goods and services. For more detailed information, you should download my presentation and check it.