SALE IN TRANSIT (SECTION 6(2) OF CST ACT)
varaprasaad at 3:24 p.m. on 18 Oct. 10
As per the sale in transit procedure of CST Act, all the subsequest sales are exempt from cst. However, in each subsequent sale there is a value addition, which was not taxed a the point of taxation.
What is the legal status on the profit margin in each subsequest sale.
Ex: A sold the goods to B @ Rs.1,000/- and B sold the same for Rs.2,000/- to C and C to D @ 3,000/-.
The ulitimate sale value is Rs.3,000/- but, the govt. got the tax on Rs.1,000/- (initial sale) only. the balance escapted from the tax net.
Anonymous User at 2:14 p.m. on 20 Oct. 10
There is no evasion of tax. The tax is payable at the first stage i.e. on Rs. 1000/-
sale in the course of inter-state trade and commerce
Anonymous User at 11:20 p.m. on 14 Jan. 11
The basic rule of inter-state sale is, "the transaction of sale" is taxable at the point of origin of movement of the goods from one state to another. so, the first point of levy of and the appropriate state to tax that transaction is the state of origin, other states are not authorize to collect tax till the termination of the movement by taking actual delivery,of goods, where the movement ends.The transaction of sale while the goods are in movement from one state to another by transfer of document of title to the goods,are out of the taxation jurisdiction of the states so long they are well supported by the statutory forms prescribed under Section 6(2) read with rule 12(4). the entire accumulated value is taxable at the point where the goods change hands on delivery at the end of the journey.so, nothing is being left out, the tax net is so wide and strong the that nothing is allowed to escape.
Anonymous User at 7:21 p.m. on 06 Nov. 11
CST transactions are taxed based on the C forms issued by one dealer to other. If no form is issued the taxable value is at the end sale value of the chain of transaction. In the C form Value is mentioned by the purchasing dealer to other dealer and the value gets amended time to time based on the changes made during transit.
Anonymous User at 10:52 a.m. on 25 Jan. 13
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