NOTIFICATION OF CST 3% TO 2%

Page no : 4

(Guest)

let us know rate of CST. w.e.f. 1-4-2008

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CST reduced to 2 % from 3%
author : S.RAVICHANDRAN Posted On : 3/25/2008 8:36:58 PM	When will the amendment be effected. Is it right from the budget date or 01.04.2008?

Expert : Jitender Posted On : 3/25/2008 11:23:46 PM	yes it is effective from 1.4.2008.

Expert : Vikas Garg Posted On : 3/26/2008 9:29:23 AM	This would be effective from 01.04.08

Expert : CA Saurabh Maheshwari Posted On : 3/26/2008 10:01:07 AM	EFFECTIVE wef 01.04.08

Expert : Jitender Posted On : 3/26/2008 11:02:06 AM	WEF 1/4/08 CST 2%

Expert : R.V.RAO Posted On : 3/26/2008 12:01:47 PM	CST IS REDUCED IN PHASED MANNER AS PER WTO TREATY OF GOVT. OF INDIA CONSEQUENT ON VAT INTRODUCTION. THE CST REDUCED % OF 2 (FROM PRESENT 3%) IS WEF 01-04-08. R.V.RAO

Expert : CA. Kirti S. Ganatra Posted On : 3/26/2008 12:57:50 PM	From 1.04.2008

Expert : Amit Sharma Posted On : 4/2/2008 10:49:48 AM	Its is applicable from 1.4.2008 and by 2011 CST will be abolished

Expert : Amit Sharma Posted On : 4/2/2008 10:50:01 AM	Its is applicable from 1.4.2008 and by 2011 CST will be

(Guest)

i hope this will help ur query

mallya (industry) (76 Points)
Replied 24 April 2008

BY E. MAIL

PERSONAL ATTENTION

COMMERCIAL TAXES DEPARTMENT

From

THIRU T. JACOB, I.A.S.,

Commissioner of Commercial Taxes,

Chepauk, Chennai-600 005.

All Heads of Assessment Circles,

Lr.No. VAT Cell / 50504/2005, dated 01.04.2008.

Sir,

Sub: CST Act 1956 – Phasing out of CST – Reduction

of rate of tax from 3% to 2% from 1st April, 2008 –

Certain instructions issued – Regarding.

******

It was proposed to reduce the rate of CST from 3% to 2% with effect ffrom

1.4.2008 in the Union Budget Speech for the year 2008-2009.

However, so far,

the Government of India have not issued any Notification reducing the rate to

2%. It has come to the notice that certain assessing officers are clarifying to the

dealers that the rate of CST applicable from 1.4.2008 is 2%. Therefore, it is

hereby clarified that until the notification reducing the rate of tax is issued by the

Government of India, the present rate of 3% will continue.

Sd./ T. Jacob,

Commissioner of Commercial Taxes

Copy to :

1. All Deputy Commissioners (CT) including Enforcement.

2. All Assistant Commissioners (CT) including Enforcement.

3. All Joint Commissioners in the O/o.C.C.T., Chennai-5.

(Guest)

The union budget of india 08-09, has already got ascent of President of INDIA,even then is there need of any further notification to empliment 2% rate of CST.

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mallya (industry) (76 Points)
Replied 24 April 2008

acc to my cto (chennai) there is need of notification...

but some states like AP and Karnataka have already adhered to the 2 % ; there is some confusion then later the traders ( if 3% is certainly to be followed) will have to raise a debit note for the diff 1 % and collect the same from their buyers; which 1 % no buyer will pay even if you raise debit note.

so please wait for the end of this month lets see 2 or 3.

(Guest)

KINDLI MAIL ME THE NOTOFICATION TO ENABLE US TO SUBMIT TO OUR CUSTOMERS

mallya (industry) (76 Points)
Replied 25 April 2008

there is no notification for the continuance of 3 %. it is understood till the new notification ( 2%) comes this 3% continues.

(Guest)

Since the notification has not come therefore the charged rate should be 3%. In the absence of notification if 2% CST is charged then the material may be stopped at Sales Tax Barriers.

Ajay Kumar Chaudhary (Business) (24 Points)
Replied 26 April 2008

If I had charged 2% CST than what will be the concequence.

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T E SOUNDARARAJAN (GM(FINANCE)) (30 Points)
Replied 27 April 2008

Commissioner of Commercial Taxes Tamil NAdu had expressly stated that tehrate of CST will be 3% till the notification is passed by GOI.It may be retrospective or prospective.Pleas echarge 3% till then.

pushpendra (Director- FinMAT Consultants) (1703 Points)
Replied 28 April 2008

charge 3% till the notification come. if will be adjustable later.

Hari Venkata Ramana (M.Com, AICWA) (124 Points)
Replied 29 April 2008

I understand from the press statement issued with regard to chief minsters conference with Union Finance Minister that the C.Ms are particular about centre's stand to compensate the revenue loss to be incurred by states on account of CST reduction which is to a tune of 425 crores. At the end of the meeting it is informed by Centre that GOI is ready to compensate to the extent of Rs. 400 crores which was agreed by Chief ministers. Accordingly a decision is said to be taken to implement the reduction of CST from 3% to 2% w.e.f 1.5.2008. However a notification or confirmation in this regard is yet to be issued by the Government.

Please go through the Notification No. 1/2008-CST-F.No.28/11/2007-ST of R.G.

Chhabra, Undersecretary to Government of India reducing the CST Rate from 3% to 2% effectuve frin 16.2008.I hope this will solve your query.