ALL INDIA RADIO & ELECTRONICS ASSOCIATION

(SOUTH ZONE)

Jhaveri Hall, IVth Floor , 'M' Block, Khaleel Shirazi Estate, 297, Pantheon Road, Chennai - 600008. Phone : 28194353

(Representing all sections of Electronics Trade & Industry for more than 50 years) Website : www.airea.org

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CENTRAL SALES TAX ( CST) REDUCED TO 3% FROM 1ST APRIL 2007

As per the Notification No.1/2007-CST-F.No.34/135/2005-ST dated 29th March 2007 issued by the Department of Revenue, Ministry of  Finance , Government of India the CST rates have been changed with effect from 1st April 2007 as detailed below

Central Sales Tax (CST) reduced to 3% from 1st April 2007. Under the Central Sales Tax, 1956 and the Additional Duties of Exercise (Goods of Special Importance) Act,1957:

The rate of CST on inter-state sale to registered dealers (aginst from-C) shall stand reduced from 4% to 3%or the rate of VAT/Sales Tax applicable in the State of selling dealer,which is lower,

Explanation : With this we need to need to charge CST @ 3% against C from with effect from 01/04/2007. Earlier we have been charging 4% CST against the C from. In case under VAT the rate of tax is 1% we need to charge 1% against C From

The rate of tax under CST Act,1956 on inter-state sale other than sale to registered dealers shall be the rate of VAT/State Sales Tax applicable in the state of selling dealer.

Explanation : The interstate sales without C form need to be changed as per the respective state VAT rate applicable for the product. Very important : Earlier in case of interstate sale with C from for a 4% commodity we need charge 10%. Now we need to charge 4% only without C Form. Now the difference between the interstate sales with and without C Form for a 4% VAT rate commodity is just 1%. This will increase the interstate trade considerably.

The rate of CST on inter-state sale to Government Departments shall also be the rate of VAT/State Sales Tax applicable in the State of the selling dealer, indicated at (b) above. The facility of inter-state purchases by Government Department against Form-D stands withdrawn.

Explanation: The facility of interstate purchase by the Government Departments against Form-D stands withdrawn.

All the above-mentioned amendments as also other provisions of the Act shall be effective from 1st April 2007

Regd. Office : 301, Sukh Sagar, N.S.Patkar Marg, Mumbai-7 Ph:022-23686932(Zonal Officers :Kolkatta, Delhi, Mumbai, Chennai)

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