Sales Tax

A BOOK REPORT IN THE SUBJECT OFLAW & TAXATION ON: |

SALES TAX |

Submitted by the Students of MMS (1) Division ‘A’ |

GROUP MEMBERS:

NAME OF THE PERSON | ROLL NO. |

Kamlesh Bhalerao | 04 |

Anand Gowda | 16 |

Rahul Kothari | 30 |

Aditi Kulkarni | 31 |

Parag Mandpe | 32 |

Vishal Rane | 47 |

Roshan Rathi | 49 |

Chetan Virkar | 58 |

INDEX

Sr. No. | Topic | Page No. |

01. | Introduction | 03 |

02. | Important Features of the Central Sales Tax Act 1956 | 04 |

03. | Important Definitions | 05 |

04. | Principles for Determining Place of Sale or Purchase | 10 |

INTRODUCTION

* Sales tax is an indirect form of tax, levied on the sale of a commodity which is produced or imported and sold for the first time. If the product is sold subsequently without being processed further, it is exempt from sales tax.

* There are two kinds of Sales Tax i.e. Central Sales Tax, imposed by the Centre and Sales Tax, imposed by each state. Normally, each state has its own sales tax act and levies the tax at various rates. Apart from sales tax, certain states also impose extra charges such as works contracts tax, turnover tax & purchaser tax. Sales tax is levied on the seller who recovers it from the customer at the time of sale.

* However, exports and services are exempt from sales tax. Thus, sales tax plays a major role in acting as a major generator of revenue for the various State Governments.

* 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...