Page 204 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 12: Central Sales Tax

 There must be a seller and a buyer Notes
 There must be a valid consent of both buyer and seller

Sale Price [Section 2(H)]

It means amount payable to a dealer as consideration for the sale of any goods which includes
the following -
 Central sales tax
 Excise duty

 Cost of packing material
 Packing Charges

 Bonus given for effecting additional sales
 Insurance charges, if goods are insured by seller Freight charges if, not shown separately
 Any sum charged for anything done by the dealer in respect of goods at the time of or
before delivery thereof
Sale price does not includes the following -
 Freight or transport charges for delivery of goods, if charged separately

 Cost of installations, if charged separately
 Cash discounts for making timely payments.

 Trade discount
 Insurance charges of goods insured on behalf of the buyer
 Goods rejected

 Goods returned within 6 months of the date of sale

Sales Tax Law [Section 2(I)]

It means any law for the time being in force in any state, or part thereof, which provides for the
levy of taxes on the sale or purchase of goods generally. Now VAT Legislation of a state shall
also be included within the ambit of the definition of “State Tax Law”.
Turnover [Section 2(J)]

It is the aggregate of the sale prices received and receivable by the dealer in respect of sales of
any goods in the course of inter-state trade or commerce made during a prescribed period.
Prescribed period is the period in which sales tax return is filed.

Year [Section 2(K)]

It means the year applicable in relation to a dealer under the general sales tax law of the
appropriate state, and if, there is no such year applicable, it is the financial year.

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