The Ministry of Finance (Department of
Revenue) through the Central Board of Excise and Customs (CBEC), an apex
indirect tax authority, implements and administers excise (central excise),
customs and service tax laws. Circulars, notifications and clarifications
issued by the CBEC supplement these indirect tax laws. Issues involving
interpretation of tax laws are decided by the judiciary, which is
independent of the legislature.
We have with us extensive experience
in successfully handling the service requirements of handling consultancy
services for Value Added Tax. It is a form of indirect Tax and is in nature
of multipoint sales tax that needs to be paid to state in form of VAT. It is
levied under Central and State VAT legislation and depends on movement of
goods in pursuance of sale transaction. If transactions involve movement of
goods from one state to another, this tax is levied under Central Sales Tax
Act (CSTA), 1956.
Here, our expertise
lies in offering VAT services and consultancy support that involves areas
- Registration under Local & Central VAT Act
- Assessment & Appeal
- Getting statutory Forms- C Form/ F Form
- Refund application for exporters
- VAT Audit
Value Added Tax (VAT) is a form of indirect Tax and is in the nature of
multipoint sales tax. Tax on sale by states in the form of VAT continues to
draw power from entry 54 in list of seventh schedule of the constitution of
India. Sale and purchase of goods is subjected to charge of VAT. VAT is
levied under Central and State VAT legislations depending upon the movement
of goods in pursuance of a sale transaction. If the transaction involves
movement of goods from one state to another (inter-state), the tax is levied
under Central Sales Tax Act (CSTA), 1956.
This Act also covers transactions of import of goods into or export of
goods out of India. Sales tax is not imposed on import of goods into the
country or export of goods out of the country. The Central Sales Tax (CST)
Act is administered by the state governments and the tax is levied at the
origination of transaction (origin based levy). The rates of tax under
Central Sales Tax Act vary from state to state and product to product. The
standard rate of CST is 2 per cent or the lower rate applicable in the state
of seller if the purchaser is purchasing the same for resale or for use in
manufacture of goods for sale or for specified purposes and both the seller
and buyer are registered dealers. Otherwise, the rate is higher of 12.5 per
cent or the rate applicable in the state of sale.
The transactions of sales or purchases involving movement of goods within a
state (intra-state) are governed by respective State Sales Tax Acts. States
also levy tax on transactions which are "deemed sales" like works
contracts and leases. A works contract essentially is a contract for
carrying out work involving supply of labor and material where the property
in the materials passes during the course of execution of the contract.
Lease is a transaction involving transfer of right to use goods.
The standard rate of VAT is 12.5 per cent and there is reduced rate of 5
per cent. Besides that, there are exemptions and rate of 1 per cent and 20
percent for specified products. In addition to sales tax, some states also
levy additional tax / surcharge, turnover tax or entry tax.
Sales tax / state VAT is payable by the seller to the government.
Ordinarily, sales tax / state VAT is recovered from the buyer as a part of
consideration for sale of goods.
We Provide VAT related following services:
* Registration under Local & Central VAT Act.
* Assessment & Appeal
* Getting statutory Forms- C Form/ F Form
* Refund application for exporters
* VAT Audit