Central Sales Tax

This query is : Resolved

Kirparam Pokhriyal (Querist)
Follow

14 July 2010 Dear Expert's

I want to ask a question, if we have purchase raw materials for manufacturing medicine from Ahmedabad, they have charged CST @ 2% on basic value of invoice plus some handling charges its right or wrong. please guide me.(details of invoice is below:

Basic Value Rs.135000
Handling chg.Rs. 3500
Toal Value Rs.138500
CST @ 2% Rs. 2770
Total Value Rs. 141270

Ca Aashish Upadhyay

Ca Aashish Upadhyay (Expert)
Follow

14 July 2010 Kindly refer section 2(h) of the CST ACT which says sales price is the amount payble to a dealer as consideration for the sale of goods,......inclusive of any SUM CHARGED FOR ANY THING DONE....INRESPECT OF THE GOODS at the time or before the delivery thereof

Hence in my opinion the delaer has done right in including the handling charges in the sales price