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Central
Sales Tax
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Definition
of `sale' is being enlarged to cover deemed sale
involved in the execution of works contract, leasing
and hire-purchase transactions.
It
may be noted that the above concepts were introduced
in local sales tax laws by State Governments long
ago following an enabling provision incorporated
in the Constitution of India.
The new definition of "sale" will enable
levy of central sales tax on such deemed sale
etc., which was not permissible under existing
laws.
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Amendments
have also been proposed so as to :
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provide that central sales tax does not become
greater than local sales tax in case of sale
of goods to the Government and registered dealers
;
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provide for exemption from central sales tax
in cases where goods are exempt from local sales
tax ;
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make furnishing of Form C compulsory by the
dealer except in respect of exempted goods ;
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include "telecommunication network"
in the category of goods which can be specified
in certificate of registration for the purposes
of levy of tax, etc ;
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withdraw powers of the State Governments to
waive the requirement of C Form.
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Another
substantative change proposed is in regard to "Declared
Goods" which are specified in CST Act as goods
of special importance in inter-state trade and commerce.
So far, the States were prevented from subjecting
"Declared Goods" to local sales tax at
more than single point. The amendment will enable
them to subject such goods to local sales tax at
more than one stage.
All the above amendments will take effect from
a date to be notified by the Central Government,
after passing of the Finance Bill 2002.
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