UNIT-I

CENTER SALES TAX

EXERCISE: 

Objective Type Questions:

 1. State whether the statements are 'True' or 'False' as per the provisions of the CST Act; 

(a) Both registered and unregistered dealers can collect tax under CST. 

(b) Cost of freight charged separately in the invoice shall be deducted from sale price for levy of CST.

 (c) Subsidy given by government to manufacturers to compensate cost of production forms part of sale price.

 (d) All directors of a private company ( present and past ) are personally liable for any tax due under the CST Act. 

(e) Indian Railways which sells unclaimed/uncollected goods is treated a dealer.

 (f) "Goods" include shares and securities. 

(g) When goods are sent by VPP , the sale is said to take place in the State from where the parcel is sent.

(h) The registration certificate under CST is non-transferable. 

(i) To avail concession in CST , in respect of sales to registered dealers, Form D is to be furnished by the dealer. 

(j) Electricity supplied does not come within the meaning of 'goods' under CST Act; 

[Ans: (a) False; (b) True; (c) False; (d) True; (e) True; (f) False; (g) False; (h) True; (i) False; (j) False.] 

 2. Fill up the blanks , having regard to the provisions of the Central Sales Tax Act: 

(i) D, a dealer in Maharashtra has sold goods to G in Gujarat for which the sales tax rate in Maharashtra is 2 per cent and the rate in Gujarat is 3 per cent. The rate of CST leviable is ---------------|

(ii) The application for compulsory registration should be submitted by a dealer within days of making an inter-state sale. ----------------|

 (iii) C of Karnataka sends goods to T of Tamil Nadu for doing some job work . T adds some materials of his own , completes the job and returns the same to C. The above transaction CST . 

 (iv) The dealer aggrieved by an appealable order should normally file appeal within days from the date of 

(v) To avail concession in CST, in respect of sales to registered dealers , form is to be furnished by the dealer.

(vi) A dealer engaged in effecting inter - state sale is required to get himself registered where his turnover exceeds

 [Ans: (i) 2 percent; (ii) 30 days; (iii) attracts; (iv) 45 days from the date on which the order is served on him; (v) 'C'; (vi) Any amount;] 

B: Very Short Answer Type Questions: 

1. Mention two features of Central Sales Tax Act. 

2. Write a short note on Administration of Central Sales-Tax Act.

3.  Mention the names of six items which do not fall within the meaning of goods under the CST Act.

4. Mention the names of six items of goods which fall within the meaning of declared goods under the CST Act. 

5. Write a short note on Place of Business under the CST Act. 

6. Who is liable to pay' Inter-State Sales Tax' under Central Sales-tax Act ? During the month of April, 2012, Sushil Sharma, a dealer under the CST Act, made inter-state sales of Rs. 11,00,000. The rate of applicable for the goods in side the sate is 10 % The sales include central sales tax. 

Calculate the amount of central sales tax payable:

 (a) if the goods were sold to registered dealers against' Form C',

 (b) goods were sold to unregistered dealers.

 [Ans: Rs. 21,561, Rs. Rs. 1,00,000] 

8. When a dealer can apply for cancellation of certificate of registration.

9. Mention the important particulars required to be furnished in an application for registration u/s 7 of the Central Sales Tax Act.

10. Is an auctioneer a dealer under the CST Act? 

11. Mention the advantages of Registration.

C: Short Answer Type Questions: 

 1. Explain briefly the types of transactions not regarded as sale.

2. Explain briefly the different types of registration under the CST Act. 

3. When is a sale or purchase of goods said to take place in the course of inter-state trade or commerce?

 4. Explain the meaning of "Occasions the movement of goods" as used in the CST Act.?

 5. When an inter-state or intra-state sale is deemed to be a sale in the course of export out of India?

6. Who is a dealer? Can a government be a dealer under the CST Act.

7. Is Registration of a dealer compulsory under C.S.T. Act?

8. Mention the essential elements of sale under the CST Act.

 D: Long Answer Type Questions :

 1. Give the meaning of the term 'Inter-State Sale' and explain its ingredients.

 2. Define a Dealer. State the procedures for registration under the CST Act.

3. Explain the benefits of registration under the CST Act.

4. Describe the principles for determining when a sale or purchase of goods takes place in the course of 'Export' from India. Is such sale liable to tax?

5. Explain the procedure of payment of Central Sales Tax by the dealers to the Govt.

6. When does the Liability to tax on inter-state sales arise? Explain.

7. Mention the different types of 'Forms' used under the CST Act.

8. Write notes on: 

(a) Declared goods;

 (b) Turnover;

 (c) Issue of Duplicate Certificate;

 (d) Compulsory Registration.

 9. Explain the procedure for determination of turnover as laid down in the C.S.T. Act, 1956.

10. From the following information compute the taxable turnover of Mr. Ramesh Agarwal , a dealer under the CST Act. 

Gross amount received/receivable by the dealer during the quarter ending 30-6-12 (excluding the sales-tax) Rs. 6,00,000. 

The amount of sales stated above includes: 

(i) Sale of goods in course of export outside India 40,000

(ii) Cost of freight and installation charged separately se but included in the turnover (in case of inter-state sale) 6,000

 (iii) Sale of goods outside the state 80,000

 (iv) Subsequent sale in the course of inter-state trade 1,00,000 

(v) Goods returned within 2 months (against inter-state sales) 4,000 

(vi) Goods returned after 6 months (against inter-state sales) 10,000

 [Ans: Rs. 3,70,000]

 11. M/s. Bora & Sons, Guwahati effected a sale of goods in course of inter-state sale during the month of April, 2012 as under (aggregate sale price):

 (i) to an unregistered dealer Rs. 12,00,000.

 (ii) to a registered dealer Rs. 15,30,000 against 'C' Form

 Calculate the amount of Central Sales Tax to be deposited by M/s. Baruah & Sons for the above sales assuming that the rate of VAT applicable to the items sold is 20%. 

[Ans: Rs. 2,30,000] 

12. The gross turnover of the business of Mr. Kalita in course of inter-state sale during the accounting year 2011-12 is Rs.39,90,000. From the following information compute the amount of central sales tax payable by him. 

Aggregate of sale price (Rs.)             Tax collected at the rate of 9,80,000                                                     13.5% 

7,44,000                                                     20%

 6,51,000                                                      5%

12,75,000                                                    2%

3,40,000                                                    Exempted goods.

[Ans: Rs. 2,30,000]

Type-Bharat Kalita 



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