O.M.S. Purchase & sales

[Hasan Patanwala]

Good Day Everyone,

I am having business in Plastic Moulding ( Frames Moulding) which is carried-out all over India. I do Purchase as well as Sales within India. Do I pay C.S.T. Tax on Total Sales Tax Amount or do I get rebate from Purchase Tax also.

[YAGAY and SUN]

Dear Hasan,

You are under obligation to pay the CST when you sell intended goods under CST Act, 1956 i.e. interstate. On purchase within State (i.e. from where you are operating) you may avail Input Tax Credit, if purchase items are incorpated in your Registration Certificate ( both in VAT & CST).

Please check material facts at your end and consult with a good Tax Consultant before availing ITC.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Central sales tax applies to interstate sales; input tax credit may be available for in state purchases if registered. Obligation to levy Central Sales Tax (CST) arises on interstate sales; input tax credit (ITC) for in state purchases is available only if purchased items are included in the taxpayer's registration certificate and compliance conditions under VAT/CST are met. Verification of material facts and professional tax advice are recommended before claiming credits.