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LEVY AND COMPUTATION OF TAX

CHAPTER-6. LEVY AND COMPUTATION OF TAX. INTRODUCTION. LEVIED BY CENTRAL GOVERNMENT & COLLECTED BY STATE GOVT. SUBSEQUENT SALE ADMINISTRATIVE AUTHORITIES VAT RULES APPLICABLE

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LEVY AND COMPUTATION OF TAX

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  1. CHAPTER-6 LEVY AND COMPUTATION OF TAX

  2. INTRODUCTION LEVIED BY CENTRAL GOVERNMENT & COLLECTED BY STATE GOVT. SUBSEQUENT SALE ADMINISTRATIVE AUTHORITIES VAT RULES APPLICABLE PROCEEDS COLLECTED ARE RETAINED BY THE STATE GOVT.- In case of Union Territories proceeds form part of Consolidated Fund of India.

  3. FEATURES OF RATE OF TAX • SUBJECTIVE RATE OF TAX- • Rate of tax in the seller’s state • The category of goods i.e. declared or undeclared goods • The class of dealers i.e. registered or unregistered • STAGE OF LEVY • BRANCH AND CONSIGNMENT TRANSFER • PERIOD OF TURNOVER • DECLARATION • PURCHASE OF GOODS FOR CERTAIN PURPOSES

  4. CST RATES

  5. The consideration for sale of any goods less sum allowed as cash discount, “freight, insurance and cost of installation, if charged separately” but includes any other sum chargeable for anything done in respect of goods before delievery. Sale price

  6. Any sum charged for by dealer • Central Sales tax • excise duty • Packing material & packing charges • Cost of Freight • Cost of Insurance • Incentive paid to supplier when includible • Dharmada (Charity) • compulsory Warranty Charges INCLUSIONS IN SALE PRICE

  7. Goods returned/ rejected • Cost of installation • Transit insurance • Deposits for returnable containers • Freight and transport charges for delivery of goods • Subsidy paid by Government • Export incentives to seller • Discounts Note: Tax payable to be rounded off to the nearest rupee. EXCLUSIONS IN SALE PRICE

  8. The following are included in computing gross turnover: • Sale price of goods outside the State • Sale price of the exempted goods • Sale price of the goods sold within the State • Sale price of goods sold in the course of import or export. However, the sale price of the following are not included in computing gross turnover: i) Newspapers, ii) stock and shares and iii) securities Computation of gross turnover

  9. Computation of taxable turnover

  10. If the amount of sales tax is not included in the sale price. Amount of tax= Rate of Tax If the amount of sales tax is included in the sale price: Amount of tax = Rate of Tax COMPUTATION OF TAX * Taxable Turnover 100 * Taxable Turnover 100 + Rate of Tax

  11. COMPUTATION OF TAX Answer to problem 1

  12. Statement of Taxable Turnover of M/s Arvind Bros. Ludhiana Answer to problem 2

  13. Statement of sales tax payable

  14. Computation of CST Solution to problem 6

  15. Solution CALCULATION OF GROSS TURNOVER

  16. Thank youmade by:-sandeepkaurassistant professor gccba-42

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