Inter-state tax liability capped at lower of central rate or state law; registration and declaration required. Amendment makes every dealer selling specified goods in inter-State trade to a registered dealer liable to pay tax at three per cent of turnover or at the rate applicable under the appropriate State sales tax law, whichever is lower, subject to Central Government power to reduce that rate. Other inter-State sales are taxed at the State rate; a dealer is deemed liable under the State law for these purposes. The reduced provision applies only if the selling dealer furnishes a prescribed declaration, duly filled and signed by the registered purchaser, within the prescribed time or extended time.
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Provisions expressly mentioned in the judgment/order text.
Inter-state tax liability capped at lower of central rate or state law; registration and declaration required.
Amendment makes every dealer selling specified goods in inter-State trade to a registered dealer liable to pay tax at three per cent of turnover or at the rate applicable under the appropriate State sales tax law, whichever is lower, subject to Central Government power to reduce that rate. Other inter-State sales are taxed at the State rate; a dealer is deemed liable under the State law for these purposes. The reduced provision applies only if the selling dealer furnishes a prescribed declaration, duly filled and signed by the registered purchaser, within the prescribed time or extended time.
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