|Sales Tax Interview Questions & Answers - Learning Mode|
TAX INTERVIEW QUESTIONS
SALES TAX INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE
Sales Tax Interview Questions & Answers - Learning Mode
Sales tax charged on the sales of movable goods. Sale tax on Inter State sale is charged by Union Government, while sales tax on intra-State sale (sale within State) (now termed as VAT) is charged by State Government. Sales can be broadly classified in three categories. (a) Inter-State Sale (b) Sale during import/export (c) Intra-State (i.e. within the State) sale. State Government can impose sales tax only on sale within the State. CST is payable on inter-State sales is @ 2%, if C form is obtained. Even if CST is charged by Union Government, the revenue goes to State Government. State from which movement of goods commences gets revenue. CST Act is administered by State Government.
|Try Sales Tax Interview Questions & Answers - Exam Mode|
1Sort By : Latest First | Oldest First | By Rating
|Sales Tax Interview Questions & Answers - Learning Mode|
|Try Sales Tax Interview Questions & Answers - Exam Mode|
Question: What is Form H used for, in case of Central Sales Tax (CST)?
Answer: A sale during the course of export is exempt from CST and also the penultimate sale is deemed to be in course of exempt from CST under the CST Act. The dealer exporting the goods must have documents in proof of export such as an airway bill, bill of lading, shipping bill, customs documents, bank certificate etc. However, if the penultimate seller is not having any proof evidencing that the sale is exempt, the actual exporter is required to issue a certificate in H Form to the penultimate seller. Source: CoolInterview.com
Question: What is Registration under CST Act in case of Central Sales Tax (CST)?
Answer: Every dealer who carries out the inter-state sales is liable to pay Central Sales Tax. As per the CST Act, every dealer who carries out inter-state sales has to be registered with the Sales Tax Authority. Intermediaries like agents and transporters are not required to be registered, since they do not affect sales. Registered dealers can purchase goods at concessional rates by issuing the C Form. Source: CoolInterview.com
Question: What is Form F used for, in case of Central Sales Tax (CST)?
Answer: Under CST Act, F Form is used for Branch transfers and Consignment transfers. Goods when transferred from one place to another under the same principal, is known as Branch Transfer and when it is transferred to agents, it is termed as Consignment Sale. Here the dealer has to furnish a declaration 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.
One F Form covers all transactions in one month, irr Source: CoolInterview.com
Question: What happens if the conditions for CST Act are satisfied?
Answer: 1. The CST Act becomes applicable and CST is levied at the Rate specified.
2. it is levied on Turnover, which in turn is computed on the basis of the sale price.
3. it is payable by the dealer who makes the sale in the course of interstate trade or commerce.
4. It is payable in respect of sale of goods effected by him during the year.
5. It is so payable to appropriate state in which the dealer has a place of business. Source: CoolInterview.com
Question: Where is Central Sales Tax (CST) paid and who collects them?
Answer: Central Sales Tax (CST) is payable in the state where the goods are sold and movement commences. The tax collected is retained by the state in which the tax is collected. CST is administered by Sales Tax authorities of each state. Thus, the State Government Sales Tax officer who assesses and collects local (state) sales tax also assesses and collects CST. Source: CoolInterview.com
Question: What is the rate of Central Sales Tax (CST)?
Answer: In an inter-state sale to a registered dealer against form C the rate of CST is 4% or local sales tax rate whichever is lower.
If under the local sales tax law, sale or purchase is exempt from CST the CST is Nil.
In an inter-state sale to government against form D the rate of CST is 4% or local sales tax rate whichever is lower.
Rate of CST in case of inter-state sale of declared goods without form C or D is twice the rate of tax applicable to the local sale or purchase o Source: CoolInterview.com
Question: What is Form C used for, in case of Central Sales Tax (CST)?
Answer: As per CST Act, sales tax on inter-state sales is 4% or sales tax rate for sale within the state, whichever is lower, is applicable, when the sale is made to a registered dealer and the goods are covered in the registration certificate of the purchasing dealer. Otherwise, the tax is higher, i.e
10% or tax leviable on sale of goods inside the state, whichever is higher. This concessional rate is applicable only if the purchasing dealer submits a declaration in prescribed C Form.
One Source: CoolInterview.com
Question: What are the types of Sales Tax?
Answer: There are two kinds of Sales Tax i.e. Central Sales Tax, imposed by the Centre and Sales Tax, imposed by each state. Source: CoolInterview.com
Question: What are the objectives of CST Act?
Answer: 1. Formulate principles for determining when a sale or purchase of goods takes place :-
- in the course of interstate trade or commerce, or
- outside a State, or
- in the course of import into or export from India.
2. Provide for the:-
- levy of
- collection and
Of taxes on sales of goods in the course of interstate trade or commerce.
3. Declare certain goods to be of special importance of inter state trade or commerce.
4. Specify Source: CoolInterview.com
Question: What is Inter-State Sale in case of Central Sales Tax (CST)?
Answer: Inter-state Sale is deemed to take place if there is:-
(i) Movement of goods from one state to another or
(ii) Transfer of documents of title to the goods during their movement from one State to another. The above two modes are mutually exclusive. Source: CoolInterview.com
Question: What is Central Sales Tax (CST)?
Answer: Central Sales Tax (CST) is a tax on sales of goods levied by the Central Government of India. CST is applicable only in the case of inter-state sales and not on sales made within the state or import/export of sales.
Inter-state sale is when a sale or purchase constitutes movement of goods from one state to another. Accordingly, consignments to agents or transfers of goods to branch or other offices is not a sale as per the CST Act. Source: CoolInterview.com
Question: What are the conditions for CST Act to become applicable?
Answer: 1. The sale should not take place in the course of import into or export from India.
2. There should be a Dealer and such dealer must be registered under the CST Act.
3. He should made a sale to any buyer ( registered dealer or unregistered dealer)
4. He should carry on any business.
5. He should made a sale of any goods ( declared or undeclared)
6. The sale should be made in the course of interstate trade or commerce ( i.e. the sale should not be a sale inside a state. Source: CoolInterview.com
Question: What is Form I used for, in case of Central Sales Tax (CST)?
Answer: Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations, duties and tariffs.
Under the CST Act, supplies made by a registered dealer to a unit in the Special Economic Zone (SEZ) will not be subject to CST, provided such unit furnishes a declaration in I Form. Source: CoolInterview.com
Question: What are different types of Central Sales Tax (CST) Transaction Forms?
Answer: Dealers have to issue certain declarations in prescribed forms to buyers/sellers. The type of forms are C, D, E1, E2, F, H and I. Forms C, E1, E2, F and H are printed and supplied by Sales Tax authorities. Dealers have to issue declarations in these forms printed and supplied by the Sales Tax authorities. Form D is to be issued by government organization departments making purchases. These forms are to be prepared in triplicate.
The sales tax on inter-state sale is 4% or the app Source: CoolInterview.com
Question: What is Forms E1 and E2 used for, in case of Central Sales Tax (CST)?
Answer: According to Section 6(2) of the CST Act, only the first inter-state sale is taxable and the subsequent sale during movement of goods by transfer of documents is exempt from tax, if the purchasing dealer is a registered dealer.
Usually, the transfer of a document refers to the document of title to goods which is endorsed and transferred in favor of the purchaser and is duly signed by the endorser. The document can be further transferred by subsequent endorsements.
The subsequent s Source: CoolInterview.com
Question: What is Sale Price in case of Central Sales Tax (CST)?
Answer: "Sale Price" means the amount payable to a dealer as consideration fro the sale of any goods.
It does not include,
Cash Discount ( including Trade Discount, Quantity Discount, Additional Discount ). This sum is deducted from sale consideration.
Cost of installation, freight and delivery is excluded ( if such cost is separately charged).
Goods returned by buyer within 6 months.
Goods rejected by buyer.
Consideration for sale any goods
< Source: CoolInterview.com
Question: What is inter-state sale in case of Sales Tax?
Answer: An inter-state sale takes place when a sale or purchase:
Leads to movement of goods from one State to another State.
Is achieved by the transfer of documents of title while the goods are being moved from one State to another State.
Example 1: ?A? in Orissa sells and delivers goods to ?B? in Gujarat.
Example 2: ?X? in Orissa delivers goods to ?Y? in Calcutta. ?Y? sells it to ?C? in Delhi by transferring the document of title during the goods movement from Oriss Source: CoolInterview.com
Question: What are Declared Goods in case of Central Sales Tax (CST)?
Answer: Declared Goods means goods declared under Section 14 to be of special importance in inter- state trade or commerce. Some of the important items are cereals, iron and steel, jute, oil seeds, pulses, man-made fabrics etc. Source: CoolInterview.com
India News Network
Latest 20 Questions
Payment of time- barred debt is:
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal