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Forms of Central Sales Tax, Indirect Tax Laws Video Lecture | Indirect Tax Laws - B Com

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FAQs on Forms of Central Sales Tax, Indirect Tax Laws Video Lecture - Indirect Tax Laws - B Com

1. What is Central Sales Tax?
Ans. Central Sales Tax (CST) is an indirect tax levied by the central government on the sale of goods during inter-state trade or commerce in India. It is imposed on the sale of goods from one state to another and is governed by the Central Sales Tax Act, 1956.
2. How many forms of Central Sales Tax are there?
Ans. There are three forms of Central Sales Tax, namely Form C, Form F, and Form H. Form C is used for obtaining concessional rates of CST on inter-state purchases for resale. It is issued by the buyer to the seller. Form F is used for obtaining CST exemption on goods purchased for export purposes. It is issued by the buyer to the seller. Form H is used for obtaining CST exemption on goods purchased for the purpose of carrying out works contracts. It is issued by the buyer to the seller.
3. What is the purpose of Form C in Central Sales Tax?
Ans. The purpose of Form C in Central Sales Tax is to enable the buyer to obtain concessional rates of CST on inter-state purchases for resale. It helps in reducing the burden of tax on the buyer and promotes inter-state trade by providing a lower tax rate.
4. How does Form F help in Central Sales Tax?
Ans. Form F in Central Sales Tax helps in obtaining CST exemption on goods purchased for export purposes. It allows the buyer to procure goods without paying CST, as these goods are intended for export and not for consumption within the country. This promotes exports and encourages international trade.
5. When is Form H used in Central Sales Tax?
Ans. Form H in Central Sales Tax is used when goods are purchased for the purpose of carrying out works contracts. It helps in obtaining CST exemption on such goods. Works contracts refer to contracts involving the construction, installation, or commissioning of any movable or immovable property. Using Form H prevents double taxation and ensures that CST is not charged on goods used specifically for works contracts.
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