Page 211 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes liable to pay tax under general sales tax law the period of filing the return in a financial year is
1. Quarter ending on 30 June
2. Quarter ending on 30 September
3. Quarter ending on 31 December

4. Quarter ending on 31 March

Notes Every dealer who is liable to pay Central sales tax should make an application for
registration under the Act to appropriate authority in his state.

Self Assessment

Fill in the blanks:

6. The last sale or ..................................has been made after the purchaser of such goods has
obtain the order of export or agreement for export was entered into by him.

7. The rate of central sales tax is ..................................% or local state rate whichever, is lower
on the first point of inter-state sale.
8. The ..................................sales tax can be collected from the buyers only by the registered
dealers on the inter-state sale effected by them.
9. Every .................................. who is liable to pay Central sales tax should make an application
for registration under the Act. to appropriate authority in his state.
10. Dealer shall submit an application along with his .................................. and copies thereof to
the registering authority within six months before the end of the relevant year.

12.9 Registration of Dealers

According to Section 7, registration of dealer can be done in any of the two ways-
1. Compulsory registration

2. Voluntary registration
Compulsory Registration Section (7): Every dealer who is liable to pay Central sales tax should
make an application for registration under the Act to appropriate authority in his state. If a
dealer does not get himself registered, he would be subject to penalty under section 10 which is
imprisonment which may extend to six months or fine or both and in case of continuing offence,
a fine of 50 per day till the default continues.

Voluntary Registration Section (7): Under following circumstances any dealer can voluntarily
apply for registration even though he is not liable to pay tax under central sales tax Act.

1. If he is registered under sales tax law of state but, is not liable to pay tax under central sales
tax Act.
2. If there is no sales tax Act in a state or any part of it, any dealer having a place of business
in that state or part thereof.
3. If he deals in a tax-free goods in a state.

206 LOVELY PROFESSIONAL UNIVERSITY