Dear Sir,

Those who will not give C form the rate remains 4% .So due to current notification the difference between C form suppliers and not C form suppliers increases from 1% to 2%.

Previously 4%-3%=1%

Now 4%-2%=2%

Thanking you

Dear Sir

Please mail a copy of new notification of CST rate

Thanx

for TYCON AUTOMATION PVT. LTD

Accounts

what notification.... there is no such notification for cst 2 % till this time......

After the meeting on 16th April2008 it was believed that the notification will be released and 2% will be effected from 1st May08.What is the position Now

the position is that the 3% cst continues.... there is no confirmed notification.....so wait till the notification comes and then only we can charge 2% 

Please arrange to mail the Notification pertaining to reduction of CST from 3% to 2% as and when it received in your office. 

Dear all,

There is no notification on rate of cst 3% to 2%. So many organisation started cst @ 2%. There is a confusion still. In future this might be penalised. So without notification the rate is remains 3%.

Thanx

Until the notification is issued the CST @ 3% against C form will continue.  This has been confirmed verbally upon by Ministry of Finance (State Taxes). The notification is under  consideration.

Please arrange to mail me the notification regarding reduction of CST @  3% to 2% from fy 2008-09. 

CST phase-out misses deadline as states,Centre continue spatNew Delhi, May 1 The reduction of central sales tax from 3% to 2% has missed its revised deadline of May 1, as the stalemate between the Centre and state governments on the compensation package continues. Government sources told FE that negotiations between the Union finance ministry and the empowered committee (EC) of state finance ministers were carried out till late on Wednesday but the two sides failed to reach a consensus.

The state finance ministers’ EC is meeting again on May 5 to discuss the issue further after which it is likely to come back to the Centre with a new compensation formula. The further reduction by one percent in the CST rate is part of the phase-out plan for the tax and introduction of the goods and services tax by 2010.



The notification is hanging fire as the Centre and states have been unable to work out a package to compensate states in 2008-09 for the losses from the reduction, estimated at anywhere between Rs 6,000 crore to Rs 13,000 crore. The disagreement on the compensation package has already delayed the rate cut, which was earlier scheduled from April 1, leading to a lot of confusion amongst trade and industry.

Although it was initially agreed that states would hike the value added tax (VAT) rate on intermediate goods from 4% to 5%, they later refused to do so on account of the approaching elections in many states as well as high inflation. They have instead demanded higher monetary compensation from the Centre - an option the finance ministry is not too keen on.

There are some other alternatives being looked at, such as permitting states to impose Vat on imports, but a consensus is yet to be arrived at. Finance minister P Chidambaram in the Budget for 2008-09 had announced the decision to reduce the CST rate to 2% from April 1, 2008. “Consultations are underway on the compensation for losses, if any, and once agreement is reached the new rate will be notified,” he had said.

courtesy: financial express

3% IS RIGHT ANSWER

3% IS RIGHT ANSWER

sudhir

1

In the Month of April We Charged 2% for Central Sales in confusion after that it come to noticed that it was 3% if notification says that 2% from ist april means ok if its 3% means we have to 1% addtional liability please give that correct information