Interview Questions.

Q1. What Are The Conditions For Cst Act To Become Applicable?

The sale have to now not take vicinity in the path of import into or export from India.

There need to be a Dealer and such dealer need to be registered beneath the CST Act.

He ought to made a sale to any buyer ( registered supplier and unregistered supplier)

He must keep on any enterprise.

He must made a sale of any items ( declared or undeclared)

The sale have to be made within the path of interstate alternate or commerce ( i.E. The sale ought to now not be a sale interior a state.

Q2. What Are The Objectives Of Cst Act?

 @Formulate standards for figuring out when a sale or buy of products takes location :-

within the direction of interstate change or commerce, or

out of doors a State, or

within the course of import into or export from India.

@Provide for the:-

levy of

series and

distribution

Of taxes on sales of goods in the path of interstate alternate or trade.

@Declare positive items to be of special significance of inter state exchange or commerce.

Q3. What Is Central Sales Tax (cst)?

Central Sales Tax (CST) is a tax on income of goods levied by means of the Central Government of India. CST is relevant handiest in the case of inter-nation income and not on income made in the nation or import/export of income.

Inter-nation sale is when a sale or purchase constitutes motion of products from one nation to some other. Accordingly, consignments to dealers or transfers of products to department or other workplaces is not a sale as in step with the CST Act.

Q4. What Is Form I Used For, In Case Of Central Sales Tax (cst)?

Special Economic Zone (SEZ) is a particularly delineated responsibility loose enclave and will be deemed to be foreign territory for the purposes of alternate operations, duties and price lists.

Under the CST Act, elements made through a registered provider to a unit inside the Special Economic Zone (SEZ) will now not be concern to CST, furnished such unit furnishes a declaration in I Form.

Q5. What Are Different Types Of Central Sales Tax (cst) Transaction Forms?

Dealers need to issue certain declarations in prescribed bureaucracy to shoppers/dealers. The form of paperwork are C, D, E1, E2, F, H and I. Forms C, E1, E2, F and H are printed and furnished with the aid of Sales Tax authorities. Dealers must difficulty declarations in these bureaucracy printed and supplied by way of the Sales Tax government. Form D is to be issued through authorities organisation departments making purchases. These bureaucracy are to be organized in triplicate.

Q6. What Is Form F Used For, In Case Of Central Sales Tax (cst)?

Under CST Act, F Form is used for Branch transfers and Consignment transfers. Goods whilst transferred from one region to every other under the equal principal, is referred to as Branch Transfer and when it's miles transferred to sellers, it is termed as Consignment Sale. Here the dealer has to provide a assertion in F Form received from the consignment agent or branch office in another state to prove that the interstate movement of goods is not a sale.

Q7. What Is Sale Price In Case Of Central Sales Tax (cst)?

"Sale Price" way the quantity payable to a dealer as consideration for the sale of any items.

It does no longer include:

Cash Discount ( consisting of Trade Discount, Quantity Discount, Additional Discount ). This sum is deducted from sale attention.

Cost of set up, freight and transport is excluded ( if such fee is one after the other charged).

Goods returned by client within 6 months.

Goods rejected by means of purchaser.

It includes:

Consideration on the market any items.

Q8. What Is The Rate Of Central Sales Tax (cst)?

In an inter-country sale to a registered provider towards shape C the charge of CST is four% or neighborhood income tax rate whichever is lower.

If below the nearby sales tax law, sale or purchase is exempt from CST the CST is Nil.

In an inter-state sale to government towards shape D the fee of CST is four% or nearby sales tax fee whichever is decrease.

Rate of CST in case of inter-state sale of declared items without form C or D is twice the charge of tax relevant to the neighborhood sale or buy

Q9. What Is Form H Used For, In Case Of Central Sales Tax (cst)?

A sale at some stage in the direction of export is exempt from CST and also the penultimate sale is deemed to be in direction of exempt from CST underneath the CST Act. The dealer exporting the goods have to have files in proof of export which include an airway invoice, bill of lading, delivery invoice, customs files, financial institution certificates and many others. However, if the penultimate seller isn't always having any evidence evidencing that the sale is exempt, the actual exporter is needed to trouble a certificate in H Form to the penultimate supplier.

Q10. What Are The Types Of Sales Tax?

There are two varieties of Sales Tax: i.E. Central Sales Tax, imposed through the Centre and Sales Tax, imposed through each state.

Q11. What Are Declared Goods In Case Of Central Sales Tax (cst)?

Declared Goods approach items declared underneath Section 14 to be of unique significance in inter- state trade or commerce. Some of the critical objects are cereals, iron and steel, jute, oil seeds, pulses, guy-made fabric and so forth.

Q12. What Is Inter-nation Sale In Case Of Sales Tax?

An inter-nation sale takes vicinity when a sale or buy:

Leads to motion of goods from one State to another State.

Is executed by way of the switch of files of identify while the goods are being moved from one State to any other State.

Q13. What Happens If The Conditions For Cst Act Are Satisfied?

The CST Act will become relevant and CST is levied at the Rate particular.

It's far levied on Turnover, which in turn is computed on the basis of the sale price.

It is payable through the supplier who makes the sale within the direction of interstate exchange or commerce.

It is payable in admire of sale of products effected through him all through the year.

It is so payable to suitable nation wherein the provider has a place of job.

Q14. Where Is Central Sales Tax (cst) Paid And Who Collects Them?

Central Sales Tax (CST) is payable in the kingdom wherein the goods are sold and motion commences. The tax amassed is retained by way of the kingdom in which the tax is amassed. CST is administered by means of Sales Tax authorities of every nation. Thus, the State Government Sales Tax officer who assesses and collects local (country) sales tax additionally assesses and collects CST.

Q15. What Is Registration Under Cst Act In Case Of Central Sales Tax (cst)?

Every dealer who contains out the inter-kingdom income is vulnerable to pay Central Sales Tax. As in line with the CST Act, every dealer who consists of out inter-nation sales needs to be registered with the Sales Tax Authority. Intermediaries like sellers and transporters aren't required to be registered, for the reason that they do not have an effect on income. Registered sellers should purchase goods at concessional costs by using issuing the C Form. 

Q16. What Is Inter-country Sale In Case Of Central Sales Tax (cst)?

Inter-state Sale is deemed to take area if there may be:-

Movement of products from one kingdom to some other or

Transfer of files of identify to the goods during their movement from one State to every other. The above  modes are at the same time exceptional.

Q17. What Is Form C Used For, In Case Of Central Sales Tax (cst)?

As in line with CST Act, sales tax on inter-state income is 4% or sales tax charge for sale within the country, whichever is decrease, is applicable, whilst the sale is made to a registered supplier and the products are covered within the registration certificate of the buying dealer. Otherwise, the tax is higher, i.E

10% or tax leviable on sale of products within the nation, whichever is better. This concessional rate is applicable simplest if the shopping supplier submits a declaration in prescribed C Form.