Effect of Taxation Laws (Amendment) Bill, 2007 on Central Sales Tax

[Submitted by Ms. Preeti Aggarwal,

April 4, 2007

Sl. No. Subject Till 31st Mar,2007 W.e.f 1April, 2007
1. Interstate Sale - Registered Dealer (Provided Form"C" is submitted) 4% or tax rate applicable in state whichever is lower 3% or tax rate applicable in state whichever is lower.
2. Interstate Sale -Government 4% or tax rate applicable in state whichever is lower(Provided Form "D" is submitted) Treatment as sale to unregistered dealer and therefore state rate will apply
3. Unregistered Dealer-Sale of Declared Goods (Declared goods are goods of special importance and the state tax rate in all the states can't exceed four percent. Twice the state vat rate Taxable at state rate
4. Unregistered Dealer-Other than Declared Goods 10% or Local State Rate whichever is higher Taxable at state rate
5. Subsequent sale to dealer to government under section 6(2) Exempt provided the Form"D" submitted Taxable, state rate of the state from where the subsequent sale takes effect.
6. Section14(ix) : omitted

Section 14 have the declared goods list.

Unmanufactured tobacco and tobacco refuse covered under sub-heading....... of the Schedule to the Central Excise Tariff Act, 1985; (5 of 1986)

It was not possible to charge the tax rate greater than 4 percent. Now the state can levy the higher rate than four percent as the unmanufacutred tobacco........omitted from the declared goods list.


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