VAT Articles

Tax deduction from Works contracts to be on taxable turnover

Amit Bajaj 17 January 2011 at 11:24

Tax deduction from Works contracts only to be on the taxable turnover Almost all States under their respective VAT laws have made provisions for deduction of VAT from payment to be made to the works contractors at the time of the payment (popula

Understanding E1 and E2 Sales under CST Act 1956

Amit Bajaj 17 December 2010 at 13:00

Central Sales Tax Act 1956 envisages single point of taxation i.e tax at the first point of sales. Subsequent sales during the movement of the goods from one state to another have been exempted under section 6(2) of CST Act. Before proceeding to u

F forms under CST Act 1956

Amit Bajaj 07 December 2010 at 14:33

To constitute interstate sales, one of the basic requirement is that there should be sale. If a person sends goods outside from its state to its branch office in another state then it is not sale because you cannot sell goods to yourself. Similarly

FAQ's on VAT

vidyasagar 23 November 2010 at 12:38

Q. What is Value Added Tax (VAT)? A. VAT is a multi-point tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid at the previous stage/tax paid on inputs. Q. What is meant by 'Sale

Tax liability on last sale proceeding sale to SEZ area

Devinder Jain 17 November 2010 at 11:57

TAX LIABILITY ON LAST SALE PRCEEDING SALE TO SEZ AREA. LAST SALE PRECEEDING SALE TO SEZ AREA. IS EXEMPT UNDER SECTION 5(3) OF THE CENTRAL SALES TAX ACT, 1956. RELEVANT PROVISONS: Provisions of the Central Sales Tax Act, 1956: Section 5(3):

Some views on Security for Registration under Punjab VAT Act

Amit Bajaj 15 November 2010 at 11:43

For registration under the Punjab VAT Act 2005 one of the requirement u/s 25(1) is furnishing of security for securing the payment of tax under PVAT Act 2005. This requirement is compulsory as per the wording of section 25(1) of PVAT Act 2005 which

Some Issues Pertaining To C Forms Under CST ACT 1956

Amit Bajaj 14 September 2010 at 12:39

SOME ISSUES PERTAINING TO C FORMS UNDER CST ACT 1956 Under CST Act 1956 there are lot of Forms and declarations which help in saving CST on the interstate transactions. C form is an important and foremost common among dealers registered under CST Act

C form must be abolished immediately

CA Anil Garg 30 August 2010 at 11:57

Under the Central Sales Tax law, C form is required to avail concessional rate of tax. Till recently, full rate of tax was 10% and concessional rate was 4%. Today, the full rate is 4% and concessional rate is 2%. For most business transactions, co

VAT: No Double taxation,yet double revenue for states

CA S.SAIRAM 18 June 2010 at 10:56

VAT: NO DOUBLE TAXATION, YET DOUBLE REVENUE FOR STATES This small write out is a mere reminiscence of the existing VAT system.All of us know that VAT is a state subject. Just to recollect, the basis for calculation of VAT is as below,Total Assessable

Amendments in Section 9(1) of DVAT Act

Devinder Jain 18 June 2010 at 10:54

AMENDMENTS IN SECTION 9(1) OF DVAT ACT. Before I express my views on the recent amendments in Sub-section (1) of Section 9, I would like to share a story with you. A person sitting with a cup of Tea surrounded by intelli