Benefit of CST

[pravinchandra salian]

Goods received by an EOU under the sale in transit transaction, the benefit of CST paid can be claimed as refund. If yes under which Section of the CST ACT.

[Guest]

Dear Mr.Salian, i hope you are receiving goods by sale in transit route under Section 6(2) (b) of the CST Act, if so, then there will not be any CST, since E1 sales is exempt from tax.

[pravinchandra salian]

Dear Venkatesh. Thanks for your immediate response. That is true that E1 sales is exempt from tax. But i want to know whether the CST paid by the manufacturer of goods can be claimed as refund.

[Guest]

Dear Mr.Salian. Exemption is available for sale of goods to Special Economic zones only and not for EOU's. Kindly refer sub sectionn 6 of Section 8 of CST Act,1956 Thanks venkatesh

[Guest]

Dear Mr.Salian. Exemption is available for sale of goods to Special Economic zones only and not for EOU's. Kindly refer sub sectionn 6 of Section 8 of CST Act,1956 Thanks venkatesh

[Guest]

VAT can be applied to the sale cost of almost all goods and services offered by a business.

Companies can reclaim VAT that they have paid on goods and services bought from other businesses. This is known as input tax.

Businesses are eligible for VAT refunds if they sell zero-rated products or services and purchase standard-rated products or services.

Voluntary VAT registration can make your company appear larger and more established. This can be particularly appealing to other VAT registered businesses and clients

[Guest]

VAT can be levied on sale of all the goods & services offered by a business.

You can also register your self in VAT through Legalraasta.

AI Summary

Clarification on CST and VAT: EOU E1 Sales Exempt, No CST Refund for EOUs, VAT Reclaimable on Purchases. A discussion on the benefit of CST for goods received by an Export Oriented Unit (EOU) through a sale in transit transaction. It is clarified that under Section 6(2)(b) of the CST Act, E1 sales are exempt from tax, but CST paid by the manufacturer cannot be claimed as a refund for EOUs, only for sales to Special Economic Zones, as per Section 8(6) of the CST Act, 1956. Additionally, VAT can be applied to goods and services, with businesses able to reclaim VAT paid on purchases. Voluntary VAT registration can enhance a company's market perception.