Interest Payable by Dealer under MVAT Act and Rate of Interest

 

Due Date of Payment of Tax: MVAT is payable by dealer on or before due date of filing the return. [Rule 41]

Interest is payable buy dealer u/s.30 of Maharashtra Value Added Tax Act, 2002.

Sec 30(1) Interest is to be paid by Unregistered Dealers on late payment or non payment of tax due as he has failed to apply for registration in time. Interest is to be calculated from 1st April of the year in which he has defaulted in getting registration to the making payment of tax. When tax is paid in part, then interest is to be calculated to that date in respect of part payment. However the amount payable under this sub-section in respect of a year need not exceed the amount of tax payable in respect of that year.

Sec 30(2) Interest is payable by Registered Dealer on late payment of tax, i.e. interest is paid after due date of filing return. Interest is to be calculated form due date to date of payment of tax. If tax is payable on filing of revised return or fresh return, then interest is to be calculated from due date of filing original return to date of payment of tax.

Sec 30(3) Interest payable by Registered Dealer on dues on assessment (for any period).

i)  interest is to be calculated on the amount remaining unpaid; after taking into consideration the amount on which interest is paid u/s.30(2) and has remained unpaid up-to one month after the end of the period of assessment,

ii)  Interest is to be calculated from next date following last day of the period covered by assessment order to the date of assessment.

 

Sec 30(4) Interest payable of Additional Tax Calculated: Interest is payable by any dealer, on amount of tax (Additional tax) paid along with one or more return filed on account of circumstances mentioned in section 30(4). under clause (a) & (b)

    Clause (a) the following proceedings have been commenced and return has filed

        i) audit of business of dealer for any period,

        ii) inspection of the accounts, registers and documents pertaining to any period, kept at an place of business of the dealer, or

       iii) entry and search of any place of business of any other place where the dealer has kept his accounts, registers, documents pertaining to any period or tock of goods,

    Clause (b) in consequence of any intimation issued under sub-section (7) of section 63.

Interest is payable @25% of Additional Tax Paid

RATE OF INTEREST

i) For purpose of calculation of interest sub-section (1), (2) & (3) of section 30, Interest payable by dealer is to be calculated @1.25% of amount of tax. Interest is payable @ 1.25% for each month or part thereof. [Rule 81(1)] Thus interest payable is simple interest.

ii) For purpose of clause (4) of section 30, interest payable is equal to 25% of additional tax paid.

Interest is to be paid, along with tax before filing MVAT return.

Tax Saving Deduction u/s. 80CCF on Income Tax

For Financial Year 2010-11 & 2011-12 i.e. Assessment Year 2011-12 & 2012-13, a tax payer can claim deduction or Rs.20,000/- by investment in Infrastructure Bonds.

• Deduction u/s.80CCF - is allowed in addition of Deduction of Rs.1,00,000/- available u/s.80C.
• The deduction is available to assessees being Individual and Hindu Undivided Family (HUF) and not other assessees like Firms, Companies, Turst, etc.
• During any financial year, Maximum Deduction allowed u/s. 80CCF is Rs.20,000/- only.
• Investment is to be made in only Infrastructure Bonds notified by Central Government.

At present such Infrastructure Bonds are issued by :

• L & T Infra Tax Saving Bonds 2011B Series open up to 24th December, 2011 with 9% Interest with Rating-(ICRA)AA+” from ICRA and “CARE AA+ from CARE
• IDFC LONG TERM INFRASTRUCTURE BONDS open upto 16th December, 2011
  Rating- (ICRA)AAA” from ICRA and “Fitch AAA(Ind) from Fitch

Related topic DEDUCTION U/S.80C OF INCOME TAX

Revised interest rate and maturity value of National Saving Certificate issued after 1st December, 2011

new Revision in Interest Rates of Post Office Small Savings Schemes w.e.f 1st April 2012

Table for calculation of interest and value of National Savings Certificate (VIII Issue) at end of every year completed.
Including Table/Chart for National Saving Certificate (VIII Issue) issued after 1st December, 2011 (1-12-2011)
NSC 8th issued after 1-10-2011 will be issued for the period of 5 years. Amount payable after 5 years for every Rs.100/- will be Rs.150.90/-
NSC (8th issue) issued after 1-10-2011 can be prematurely withdrawn after 3 years. Premature encashment will be done along with interest but after discount. The discounted premature repayment  values will be as per Table II.

TABLE I

The year for which interest accrues	Amount of interest (Rs.) accruing on the certificates of Rs. 100 denominations purchased between
	If NSC (VIII Issue) is purchased on or after March 1, 2002 but before March 1, 2003	Cumulative value of National Saving Certificate at end of period	If NSC (VIII Issue) is purchased on or after March 1, 2003 but before December 1, 2011	Cumulative value of National Saving Certificate at end of period	If NSC (VIII Issue) is purchased on or after December 1, 2011	Cumulative value of National Saving Certificate at end of period
Face Value	100	100	100	100	100	100
First Year	9.20	109.20	8.16	108.16	8.58	108.58
Second Year	10.05	119.25	8.83	116.99	9.31	117.89
Third Year	10.97	130.22	9.55	126.54	10.11	128.00
Fourth Year	11.98	142.20	10.33	136.87	10.98	138.98
Fifth Year	13.09	155.29	11.17	148.04	11.92	150.90
Sixth Year	14.29	169.58	12.08	160.12	--	--
Total Interest	69.58	--	60.12	--	50.90	--
Maturity Value	169.58	--	160.12	--	160.12	--

Value are purpose of calculating Income Tax and indicating Value of National Saving Certificate in the Accounts of the Holder.
The values are as per notification issued by the Government
Pre-mature encashment of National Saving Certificate is not allowed in case of NSC issued before 1st December, 2011.
Incase of NSC (8th Issue)  issued on or after 1st December, 2011, NSC can be prematurely encashed along with interest but after adjustment for discount. The discounted payment will be as per Table II given below

TABLE II

Period from the date of the  certificate to the date of its encashment	Amount payable inclusive of interest (Rupees)
Three years or more, but less than three years and six months	123.14
Three years and six months or more, but less than four years	127.49
Four years or more, but less than four years and six months	131.99
Four years and six months or more, but less than five years	136.65

NSC Interest calculator, chart to calculate accrued NSC interest

Details of 10 Years National Saving Scheme, NSC (IX-Issue) introduced with effect from 1-12-2011

new Revision in Interest Rates of Post Office Small Savings Schemes w.e.f 1st April 2012

• 10Years NSC (IX) issue has been introduced with effect from 1-12-2011. The new certificate are being issued from this date onwards.
• The Certificates will be in denomination of Rs.100, Rs.500, Rs.1,000/-, Rs.5,000/- & Rs.10,000/-.
• The Certificate shall mature after period of 10 years and investment of Rs.100/- shall fetch Rs.234.35 on expiry of 10 years.
• Interest is calculated @8.7% compounded half yearly
• Interest accruing at the end of the year shall be as per table/chart given below

The year for which interest accrues	Amount of Interest accruing On Certificate or Rs.100/-
First Year	8.89
Second Year	9.68
Third Year	10.54
Fourth Year	11.48
Fifth Year	12.50
Sixth Year	13.61
Seventh Year	14.82
Eighth Year	16.13
Ninth Year	17.57
Tenth Year	19.13
Total Interest	134.35
Maturity Value	234.35

• The interest on certificate shall be liable to Income Tax on annual accrual on basis as per table above. No tax shall be deducted at the time of payment of discharge value
• Certificate can be en-cashed any time. If certificate is en-cashed before one year from date of purchase, only Face Value will be received without any interest. If the certificate is en-cashed after one year but before 3 years, NSC will be en-cashed at discount, i.e. face value will be paid and interest will be paid simple interest at rate of interest applicable to post office saving account form time to time. In case of premature encashment/repayment after 3 year the amount will be paid as follows.

Period of Holding	Amount receivable inclusive of interest  Rs.
3 Year to less than 3 Year 6 Months	123.14
3 Years 6 Months to less then 4 Years	127.49
4 Year to less than 4 Year 6 Months	131.99
4 Years 6 Months to less then 5 Years	136.65
5 Year to less than 5 Year 6 Months	143.81
5 Years 6 Months to less then 6 Years	149.13
6 Year to less than 6 Year 6 Months	154.65
6 Years 6 Months to less then 7 Years	160.37
7 Year to less than 7 Year 6 Months	166.3
7 Years 6 Months to less then 8 Years	172.46
8 Year to less than 8 Year 6 Months	178.84
8 Years 6 Months to less then 9 Years	185.46
9 Year to less than 9 Year 6 Months	192.32
9 Years 6 Months to less then 10 Years	199.43
on completion of Tenth Year	234.35

• The certificate can be held in Single name of an adult or on behalf of a minor, jointly by two adults payable to both jointly or to the survivor (Joint ‘A’ Type Certificate)  or jointly by two adults, payable to either of the holders or survivor (Joint ‘B’ Type Certificate).
• Non Resident Indians will not be eligible to purchase these NSC.
• The NSC can be purchased from Post-office by payment in cash, or locally drawn cheque, or withdrawal from post officer saving account or  surrender of old certificate.
• Certificate shall be issued immediately when payment is made in cash and where payment is made by cheque, the certificate shall be issued after realising proceeds of the cheque
• The certificate can also be pledged to Government Authorities.
• Nomination facilities are also available for certificate of value of Rs.500/- and above. Nomination  can be made at time of purchasing the certificate or any time thereafter. Variation and Cancellation of Nomination is also possible.
• The certificate shall be liable to Income Tax on basis of annual accrual on basis of table above. No tax shall be deducted at the time of payment of discharge value.
• Deduction u/s. 80C is not available as no notification has yet been issued under Income Tax Act
  
  
  NSC Interest Calculator
  Chart to calculate accrued NSC interest

Admission of New Partner in Firm, Procedure for Regisration

Indian Partnership Act, 1932, Procedure for Registration of Deed of Admission in Maharashtra
An existing partnership firm may find it necessary to introduce new partner into the business of the firm. Such introduction of new partner is also termed as “Admission of Partner”.

Need to Admit new partner may be for various reasons. Some of them have been listed below.

1. New partner may be introducing capital for growth of existing business or starting new project (expansion/diversification of business).
2. He may be a technical person and may be capable to make technical contribution to the business of firm.
3. The existing partner may be retiring and new partner may be required to bring in capital to repay the capital of retiring partner.
4. The new paratner may be legal heir of deceased partner. 

Such partner may be admitted for various reasons.

Section 30 of Indian Partnership Act, requires that such partner can be  introduced only with the consent of all the existing partner. The consent is put in writing by signing a agreement which is called as Deed of Admission. The Deed of Admission must contain the terms regularly contained in Partnership Deed along with the terms of introduction on new partner. It may specifically contains the details of capital introduced by new partner, the new profit and loss sharing ratio amongst all partners, new terms of payment of remuneration to the partners and other terms and conditions laying down rights and duties of partners, etc.

The Deed of Admission must bear the necessary stamp payable under the stamp act applicable in the state in which the partnership deed is signed. It is also advisable to get the deed registered with the Register of Firms of the concerned state in which partnership business is constituted.

In state of Maharashtra the stamp duty payable as per Article 55 of Bombay Stamp Act, 1958 is as under.

Capital Contribution by Partner	Stamp Duty Payable
For a capital contribution of Rs. 50,000/- or less	Rs.500/-
For every additional capital of Rs. 50,000/- or part thereof	Rs. 500/-
Maximum stamp duty for any amount of capital	Rs. 5,000/-
For capital contributed in form of property	Same duty as on conveyance on market value of property under Article 25 of Bombay Stamp Act, 1958

Additional Stamp Duty at the time of admission of partner may be payable on additional contribution made by partners as evidence by Deed of Admission.

Procedure for Registration with “Registrar of Firms” as applicable in Maharashtra State.

• Application for admission of partner is to be made along with Form E.
• Application should be with Court Fee of Rs.5/-
• Form E must be signed by all partners, continuing as will as new and must be notarised by notary.
• It must be made within 90 days of admission of partner.
• Penalty of Rs.10/- per day will be imposed if application is not made within 90 days
• Application is be made along with fee of Rs.400/-.
• Certified copy of Partnership deed must be attached to the deed.
• Admission deed must also be translated in Marathi.
  
  Specimen for Form E for Maharasthra State

Specimen Letter for Appointment of Statutory Auditor under Companies Act.

SPECIMEN LETTER FOR ANNUAL REAPPOINTMENT OF CONTINUING AUDITOR
Ref…………………
28^th September, 2011


M/s K. S Gangaramani & Co.,
Chartered Accountants,
D-139, Bonanza Industrial Estate,
Ashok Charkrovarty Road, Kandivili East,
Mumbai 400101.
Sir,
Subject: Appointment as Auditor at Tenth Annual General Meting

We are pleased to inform you that your firm has been reappointed as Auditors of our company for conducting the audit under section 224 of the Companies Act, 1956. vide the resolution (reproduced below) passed at the Annual General Meeting of the Share-holders which was held on 26^th September, 2011.
“RESOLVED THAT the Auditors of the Company, M/s. K. S. Gangaramani & Co., Chartered Accountants (F. No. _______), who retire at this meeting, being eligible and willing to act as Auditors, be and are hereby reappointed as the Auditors of the company to hold office till the conclusion of the next Annual General Meeting at a remuneration to be fixed by the Board of Directors in consultation with them”
We will be grateful if you would kindly send us your acceptance of this appointment.
Yours Faithfully.
For SK Engineering Private Limited.
Director.
SPECIMEN LETTER FOR APPOINTMENT OF AUDITOR FOR FIRST TIME IN PLACE OF RETIRING AUDITOR
28^th September, 2011


M/s K. S Gangaramani & Co.,
Chartered Accountants,
D-139, Bonanza Industrial Estate,
Ashok Charkrovarty Road, Kandivili East,
Mumbai 400101.
Sir,
Subject: Appointment as Auditor at Tenth Annual General Meting

We are pleased to inform you that your firm has been reappointed as Auditors of our company for conducting the audit under section 224 of the Companies Act, 1956. vide the resolution (reproduced below) passed at the Annual General Meeting of the Share-holders which was held on 26^th September, 2011.
“RESOLVED THAT the Auditors of the Company, M/s. K. S. Gangaramani & Co., Chartered Accountants (F. No. _______), who retire at this meeting, being eligible and willing to act as Auditors, be and are hereby reappointed as the Auditors of the company to hold office till the conclusion of the next Annual General Meeting at a remuneration to be fixed by the Board of Directors in consultation with them”
Last Audit has been conducted by M/s. ________________________, Chartered Accountants, ___________________________________(Address)
We will be grateful if you would kindly send us your acceptance of this appointment.
Yours Faithfully.
For SK Engineering Private Limited.
Director.

Revision of Post Office Interest Rates form 1st December, 2011

 

Department of Post have issued various notification to give effect to decision of Ministry of Finance taken on 11th November, 2011. The decision was to review the increase rate of interest on various Post Office Schemes and make necessary changes in duration of scheme, payment of commission, etc.

It is notified that these decision will come in force from 1st December, 2011.

The notification pertains to discontinuing Kissan Vikas Patra (KVP) from 1-12-2011

Maturity period of 6 years National Saving Certificate) issued after 1-12-2011 will be 5 years only and maturity amount will be Rs.150.90p for every Rs.100/- The interest works out to be 8.4% p.a. compounded half yearly. Amount of Maximum deposit to be made in Public Provident Fund (PPF) account during the financial year has been raised to Rs.1,00,000/- instead of Rs.70,000/-. This is applicable to new account opened after 1-12-2011 as well as existing account. Interest on subscription made to deposit in PPF account after 1-12-2011 and on credit balance in the account will bear interest @ 8.6% p.a.

Interest on loans against PPF account will be charged @2% instead of 1%.

Post Office Monthly Income Scheme (MIS), new account opened on or after 1-12-2011, will be for 5 years only as against 6 years period. Interest rate has been increased form 8% to 8.2% per annum and interest will be calculated annually. There will be no maturity bonus of 5% for accounts opened after 1-12-2011.

Balance at Credit in Post office Saving Account will fetch interest of 4% as against 3.5% previously.

Post office Term Deposits will be for period of 1,2,3 &5 years and will fetch interest @ 7.7%. 7.8%, 8.0% & 8.3% respectively. Interest will be compounded Quarterly. If deposits are prematurely withdrawn after six months but before one year form date of deposit, then saving bank rate of interest applicable for time to time shall be paid. In case of deposit of period of more then 1 year, then interest for rate applicable for rate of deposit for period of holding after reducing 1% form the rate.

Post of Recurring deposit rate has been increased form 7.5% to 8%. A monthly deposit of Rs.10/- p.m. will fetch Rs.738.62 at the end of the period.

 

Similarly other decision will come in effect from 1-12-2011

Decision of Mof on 11-11-2011

Review of National Small Savings Fund (NSSF) by Ministry of Finance on 11-11-2011

 

Ministry of Finance, Department of Economic Affairs (Budget Division), New Delhi,  vide its Office Memorandum dated the 11th November, 2011 has taken various decision on various parameters of operation of Small Saving Schemes operated by Post Office and other departments.

Some of decision effecting small saving investors are as under

1. Kisan Vikas Patras (KVPs) will be discontinued
2. The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.
3. A new NSC instrument, with maturity period of 10 years, would be introduced.
4. The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased from Rs. 70,000 to Rs. 1 lakh.
5. Interest on loans obtained from PPF will be increased to 2% p.a. from existing 1% p.a.
6. Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid.

Interest Rates on Small Savings Instruments have been increased as under:

1. The rate of interest paid under Post Office Savings Account (POSA) will be increased from 3.5% to 4% p.a.
2. The rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with two exceptions.
3. The spread on 10 year NSC (new instrument) will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year will be notified before 1 st April of that year.
4. Assuming the date of implementation of the recommendations of the Committee as 1 st December, 2011, the rate of interest on various small savings schemes for current financial year on the basis of the interest compounding/payment built in the schemes, will be as given below:-

   Instrument	Current Rate (%)	Proposed Rate (%)
   Savings Deposit	3.50	4.0
   1 year Time Deposit	6.25	7.7
   2 year Time Deposit	6.50	7.8
   3 year Time Deposit	7.25	8.0
   5 year Time Deposit	7.50	8.3
   5 year Recurring Deposit	7.50	8.0
   5-year SCSS	9.00	9.0
   5 year MIS	8.00 (6 year MIS)	8.2
   5 year NSC	8.00 (6 year NSC)	8.4
   10 year NSC	New Instrument	8.7
   PPF	8.00	8.6

5. Payment of 5% bonus on maturity of MIS will be discontinued.

Agents Commission have also been reduced or discontinued:

1. Payment of commission on PPF schemes (1%) and Senior Citizens Savings Scheme (0.5%) will be discontinued.
2. Agency commission under all other schemes (except MPKBY agents) will be reduced from existing 1% to 0.5%.
3. Commission at existing rate of 4% will continue for Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents.
4. Incentives, if any, paid by the State/UT Governments will be reduced from the commission paid by the Central Government.

Dates of effecting the changes are yet to be notified.

Specimen Consent Letter of New Director of Company

Specimen Consent Letter of New Director of Company to be given and to be attached with Form -32 to be filed with ROC.

                                                                                    D/139, Bonanza Indl. Estate,

                                                                                    Ashok Chakrovarty Road, 

Kandivli East, Mumbai. 

400101

                                                                                    31st March, 2012

The Register Of Companies, Maharashtra,

Everest Building,

100,Marine Drive,

Mumbai  - 400 002.

            Sub: Consent to be Director OF Company,

                    ‘_____________________________ PRIVATE LIMITED’

                    Address                                                                          ,

        Bhayander East, Thane 401105.

                   

Sir,

            I, Kamal Shewakram Gangaramni , S/o of Shewakram Gangaramani, residing at above address, hereby consent to act as director of the company, ____________ ______ PRIVATE LIMITED under 264(2)/266(1). My Director Identification No. is ________. I declare that, I am not restrained or disqualified to act as a director u/s.203, 267, 274 or 388E of the Companies Act, 1956.

           

I further declare that I am not a proclaimed offender by any Economic Offence Court of Judicial Magistrate Court or High Court and any other Court.

                                                                                    Yours Faithfully,

                                                                                    Kamal Gangaramani.

Compulsory Online Filing of Profession Tax Return

COMMISSIONER OF PROFESSIONS TAX, MAHARASHTRA STATE

Vikrikar Bhavan, Mazgaon, Mumbai 400 010, dated 14th July 2011.

NOTIFICATION

THE MAHARASHATRA STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1975.

No. VAT/AMD.1010/IB/PT/Adm-6.— In exercise of the powers conferred by section 7A of the Maharashtra StateTax on Professions, Trades, Callings and Employments Act, 1975 (Mah. XVI of 1975), the Commissioner of Profession Tax, Maharashtra State hereby provides with effect from 1st August 2011 that,—

(a) in respect of the periods starting on or after the 1st April 2006; every registered Employer shall file electronic return in form III-B shall make payment of tax as per return in chalan MTR-6 before filling such return ;

(b) the periodicity and date of filing Return as well as for payment shall be as per the Provisions of theMaharashtra State Tax on Professions, Trades, Callings and Emploments Act, 1975 and the rules made in this behalf.

SANJAY BHATIA,

Commissioner of Profession Tax,

Maharashtra State, Mumbai.

Exemption to Salaried Individuals from Filing Income Tax Return

 

For Assessment Year 2011-12, Central Government has exempted Individual Assesses from filing Income Tax Return u/s.139(1) of the Income-tax Act; subject to following conditions:

1. Total income does not exceed Rs.5 lakh,
2. Total Income consists only a) Income form Salary and b)Interest for Saving bank account  not exceeding Rs.10,000/-. The assessee must have no other income.
3. Assessee has reported his PAN to his employer and amount of interest received in saving bank account, 
4. The employer has deducted the tax thereon,
5. Assessee has received Form 16 from his employer stating income, tax deducted thereon and details of tax credited to account of Central Goverment,
6. Assessee has no refund/tax liability,
7. Assessee has received salary from one employer only,

Exemption is available to individual assesses only.

Total income means income arrived after allowing deduction u/c. VI-A, i.e deduction u/s.80C, ……….. and like

NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)] DATED 23-6-2011

COST INFLATION INDEX FOR FINANCIAL YEAR 2011-2012

Cost Inflation Index for Financial year 2011-2012 is notified at 785.
Chart of Cost Inflation Index from 1981 is given below:

Financial Year	Cost Inflation Index
1981-82	100
1982-83	109
1983-84	116
1984-85	125
1985-86	133
1986-87	140
1987-88	150
1988-89	161
1989-90	172
1990-91	182
1991-92	199
1992-93	223
1993-94	244
1994-95	259
1995-96	281
1996-97	305
1997-98	331
1998-99	351
1999-2000	389
2000-01	406
2001-02	426
2002-03	447
2003-04	463
2004-05	480
2005-06	497
2006-07	519
2007-08	551
2008-09	582
2009-10	632
2010-11	711
2011-12	785

Changes in MVAT rates w.e.f 1-5-2011

 

By an amendment in previous year, by Maharasthra Government the rate of taxes of all commodities except Declared Goods was increased from 4% to 5%.

Now Central Government has by amendment in CST Act, increased the maximum rate of sales-tax on Declared Goods from 4% to 5%.

Maharashtra Government has amendment MVAT Act, MVAT rates on all Declared Goods have also increased from 4% to 5%.

Hence the tax on declared goods will be as per chart given below. The other rate changes are also given in the chart.

 

Sr. No.	Commodities	Entry No	Old Rate	New Rate	Effecative Date
1.	Copyrights for distribution and exhibition of cinematographic films in theaters and cinema halls	A -27	5%	0%	1st May, 2011
2.	Sugar and Fabrics	A-45	Nil	Nil	08/04/2011 (the date on which, Central Finance Act of 2011-12 come into effect.
3.	Ral (Ral Included along with Dhoop & Lobhan)	A-55	12.50%	Nil	1st May, 2011
4.	Pre fabricated domestic biogas units	A-56A	12.50%	Nil	1st May, 2011
5.	Cotton yarn but not including cotton yarn waste;	C-4	4%	5%	1st May, 2011
6.	Aviation Turbine Fuel	C-8	4%	5%	1st May, 2011
7.	Coal	C-22	4%	5%	1st May, 2011
8.	Cotton	C-25	4%	5%	1st May, 2011
9.	Crude Oil	C-27	4%	5%	1st May, 2011
10.	Live telecasting rights of events performed in Maharashtra	C-39	Nil	5%	1st May, 2011
11.	Hides & Skins	C-45	4%	5%	1st May, 2011
12.	Iron & Steel	C-55	4%	5%	1st May, 2011
13.	Jute	C-57	4%	5%	1st May, 2011
14.	Oil Seeds	C-68	4%	5%	1st May, 2011
15.	Vada Pav	C-94(c)	Nil	5%	1st May, 2011
16.	Notified Fabrics and Sugar	C-101(a)	4%	5%	1st May, 2011
17.	sunglasses or goggles	E -1	5%	12.50%	1st May, 2011
18.	Dry fruits excluding cashew kernels and cashew nuts	C-108A	Nil	5%	1st May, 2011
19.	Foreign Liquors	D-1	25%	50%	1st May, 2011
20.	Country Liquors	D-2	25%	50%	1st May, 2011
21.	Imported Liquors	D-3	25%	50%	1st May, 2011
22.	Aerated and Carbonated non-alcoholic beverages	D-13	12.50%	20%	1st May, 2011

Commodities Mentioned in RED are Declared Goods

Central Sales Tax, Rates of Taxes

CST, sales includes, sales excludes, rates of tax, exemption, sales price

Central Sales Tax is tax levied on sale of goods and property in course of inter-state trade. i.e. buyer and seller are located in different state and/or goods move from one state to another state.

Central Sales Tax is levi-able under Central Sales Tax Act, 1956; enacted by the Parliament of India in 1956. Entry 92A of List I of Constitution empowers Parliament to enact law relating to “Taxes on the sale and purchase of goods other than newspaper, where such sale or purchase takes place in course of Inter-State trade or commerce”

The Central Sales Tax formulates principles to determine inter-state transaction, i.e. when the sale is in course of interstate trade or commerce, when it is outside the state and when it takes place in course of import or Export.

Tax is levied under the central law but taxes are collected by the state government to the benefit of state government. The central law brings uniformity in taxing principles in case of Inter-state trade and commerce, etc.

Tax is levied and payable on inter-state trade even though no tax is payable in state which is entitle to levy central sales tax.

Tax is levied on sales; and
  for purpose of Central Sales Tax sales apart from goods include;

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(v) the supply of goods by any unincorporated association of body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(vi) a supply, by way of or as a part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink(whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration,

but does not include a mortgage or hypothecation of or a charge or pledge on goods;
Sales Excluded from turnover for taxability under Central Sales Tax Act

However following transactions are excluded from taxability under central sales tax.

1. Subsequent sales during the movement of goods in transit when supported by necessary declaration like E-1 Forms, E-II, etc.,

2. On sale of finished goods & packing material in course of penultimate sale when supported by declaration like Form-H,

3. Sales made to SEZ developer and SEZ unit when supported by necessary declaration like Form-I,

4. Sales to foreign diplomatic missions, UN, international organisation, etc. when supported by declaration in Form-J,

5. Central sales tax is applicable only to sale in course of interstate trade, imports & exports are not subject to tax under Central Sales Tax Act, hence high seas sales are also exempted from central sales tax.

Sales to dealers registered under sales tax and Government are liable to tax at lower rates. The selling dealer is required to obtain C-Form from purchasing dealer.

Rates of CST w.e.f. 1-6-2008.

1. All sales in interstate trade, to a registered dealer (registered under CST Act) supported will be at concessional rate of 2%, the selling dealer will have to obtain C-Form form purchasing dealer in other state.

2. Sale to dealer not registered under CST will have to be made at rate of sales-tax applicable in state. however were rate of tax is less then 2% in the state i.e 1% or Nil rate then the rate applicable in state will be applicable for sale under CST Act,

3. When dealer has made sale @ 2% against C-Form and C-Form is not received by selling dealer, then selling dealer will have to pay tax at rate applicable in state along with interest on delay payment of tax. Interest will be payable at rate applicable for delay in payment in state laws.

Summary table is given below:

Local Rate of Tax	Rate of tax under CST Act
	Supported by C-Form	Without C-Form
Declared Goods	2%	4%
Goods generally exempt under local act	Nil	Nil
1%	1% (No C-Form Required)	1%
4%	2%	4%
5%	2%	5%
12.5%	2%	12.5%

Where State-Government exempts sales notified u/s.80(5) no tax is payable on such sales
Tax at above rate is levied on Sale Price.

CST Act defines sale price is defined as;  ''sale price'' means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged;

Provided that in the case of a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, the sale price of such goods shall be determined in the prescribed manner by making such deduction from the total consideration for the works contract as may be prescribed and such price shall be deemed to be the sale price for the purposes of this clause.