Professional Documents
Culture Documents
CST - Requirements and CST Requirements and Practical Issues
CST - Requirements and CST Requirements and Practical Issues
Practical Issues
Presentation by
CA Rajat Talati
rajat@talatico.com
rajat@talatico
com
On 13.07.2013
Ahmedabad branch of WIRC of ICAI
Definitions
Sec 2(g) Sales
Transfer of property in goods by one person to another for
cash or deffered payment or any other valuable
consideration,, and includes :
Transfer other than in pursuance of a contract
Transfer of property in goods involved in execution of
works contract
Hire
Hi purchase
h
sale
l or installment
i t ll
t sales
l
Transfer of the right to use any goods for any purpose
Supply of goods by any unincorporated body to
members
Supply + service of food at restaurant
Excludes : Mortgage , hypothecation, Charge, pledge
CA RAJAT TALATI
Definitions
Sec
S 2(h) Sales
S l Price
P i
Sales Consideration For Goods
xx
( )Cash Discount
(-)Cash
(xx)
(+)Charges for anything done at
xx
the time of or before the delivery
y
of goods (Excl. cost of freight or delivery or cost of
installation when separately charged)
Sales Price
xx
CA RAJAT TALATI
Definitions
Sec 2(h) Sales Price : In
I case off transfer
t
f
CA RAJAT TALATI
xx
(xx)
xx
Definitions
Sec
S 2(j) Turnover
T
off Sales
S l :
I means
It
CA RAJAT TALATI
CA RAJAT TALATI
CA RAJAT TALATI
CA RAJAT TALATI
take
10
C.A. RAJAT TALATI, MUMBAI
Exp 1.
When goods are delivered to carrier or other
bailee the movement of goods for the purpose of
clause (b) shall be deemed to commence at the
time of such delivery and terminate at the time
when delivery is taken from such carrier
Exp 2.
2
When the movement of goods commences and
terminates in the same state it shall not be
regarded as interstate sales if the goods while
movement pass through the territory of any other
state
CA RAJAT TALATI
11
CA RAJAT TALATI
12
Determination of turnover
Sec 8(A)
CA RAJAT TALATI
13
S
Sec
5(1)
Sale in the course of export:
Sale
S l or purchase
h
occasions
i
such
h exportt OR
Effected by transfer of documents of title of goods
After the goods have crossed the customs frontiers of
India
CA RAJAT TALATI
14
S
Sec
5(2)
Sale in the course of import :
Sale
S l or purchase
h
occasions
i
such
h import
i
t OR
Effected by transfer of documents of title of goods
Before the goods have crossed the customs frontiers of
India
CA RAJAT TALATI
15
Sec 5(2)
CA RAJAT TALATI
16
S
Sec
5(3)
Sale in the course of export (Deemed
E
Export
t/P
Penultimate
lti
t sale):
l )
Last sale or purchase preceding the
export
If such sale or purchase is for complying
with the agreement or order for or in
relation
l
to such
h export
CA RAJAT TALATI
17
Sec 5(4)
18
S
Sec
5(5)
Aviation Turbine Fuel purchased
By Indian carrier
For its international flight purchases
S h purchases
Such
h
shall
h ll be
b deemed
d
d to
t take
t k place
l
in the course of exports
CA RAJAT TALATI
19
BRANCH TRANSFER
Sec
S 6A CST Act
A t
Transfer to Branch/ HO/ agent out side
the state other wise than sale
Deduction to be claimed from TO
Production of F Form- 1 for 1 month
transactions
Non- Production of F form Deemed as
inter- state Sale
Deeming Provision is it constitutional
Can
C
fform C b
be produced
d
d iin case off disallowance
di ll
CA RAJAT B TALATI
25
FG to Br. / HO
FG to Con Agent
RM/FG to factory for processing
Fixed Assets
RM / PM to 3TP for processing / job work
21
BRANCH TRANSFER
Br.
Br Trf return with in 6 months
Is form F required?
Yes
22
BRANCH TRANSFER
Rate of tax on Br Trf.
Trf Disallowed
On what value? Transfer value?
23
Br Trf.
Br.
Trf v/s inter
inter-state
state sales
Status of branch / depot & its functioning
Power to appropriate goods
Order processing
H.O. processes & issues instruction
p
g
P.O. processing
Credit control
Reporting of salesmen / field staff
Receipt of payment
CA RAJAT B TALATI
24
Br Trf.
Br.
Trf v/s inter
inter-state
state sales
One to one correspondence
Stock movement
product mix
Std goods v/s customised goods
Dispatch quantity
Std qty dispatch
Mass dispatches / dispatches in economic qty
size
Seasonal dispatches
Labeling on goods
Floating stock
CA RAJAT B TALATI
25
Br Trf.
Br.
Trf v/s inter
inter-state
state sales
Agreement
Agreement to sale
sale v/s sales
sales agreement
agreement
Inspection of goods
Coloured transactions
CA RAJAT B TALATI
26
27
CA RAJAT B TALATI
28
C form Y
C
form
in
West
Bengal
E II
E-II
form
E-II
form
CA RAJAT B TALATI
Z
in
Orissa
29
4%
12.50%
A per the
As
th original
i i l trans
t
2%
2%
4%
12.50%
4%
12 5%
12.5%
CA RAJAT B TALATI
30
CA RAJAT B TALATI
31
FORMS C,H,E1,EII,F
C H E1 EII F & Other FORMS
For what C
C form could be issued?
[Sec8(3)]
To be issued by RD or Central Govt.
Specified
p
in registration
g
certificate
INTENDED FOR
Resale by him
For
F use b
by hi
him in
i th
the manufacturing
f t i
or
processing of goods for sale.
32
C.A. RAJAT TALATI, MUMBAI
33
C Form
F
CST Rules (central)
12(1)- one C form for one Qtr. (w.e.f. 1.10.06)
Mah Cir no. 28T/2005 dt 24.10.05 to submit
only list of forms not recd. (para 5) Originals
to be produced at the time of Assessment.
Above Rule applies to E I & E II also (Rule 9(b))
Loss of C form
Elaborate procedure , Indemnity, Notification
etc.
C form for URD period?
Can be issued from the state where registered
[rule 12(7)]
CA RAJAT TALATI
34
Form F
Purposes
P
Not mentioned in Sec 6A
Not
N t provided
id d iin R
Rule
l 12(5)
Form F
Certificate for receipt & accounted for.
for
CA RAJAT TALATI
35
36
S
Sec
9
Tax Payable on interstate sales turnover
(2)Authority
(2)A th it can assess and
d reassess ttax collected,
ll t d
interest , penalty
(2B)The dealer does not pay tax in time he shall be
t pay tax
to
t
as per the
th generall sales
l tax
t
law
l
off each
h
state
CA RAJAT TALATI
37
Sec 10
If any Person
Furnishes declaration forms which he believes to
be false
After purchasing goods for the specified purpose
fails to use those goods for that purpose without
reasonable excuse
Falsely represents purchasing goods of class
covered by his certificate of registration
URD represents himself as RD and collects tax etc
Shall be liable to Penalty
y
CA RAJAT TALATI
38
CA RAJAT TALATI
39
CA RAJAT TALATI
40
41
Time limit
CA RAJAT TALATI
42
CA RAJAT TALATI