The frequent changes in the Taxation Laws multiplies complications in complying with the provisions of Tax Laws. A common man finds some difficulties to carry out its trade in commerce without the help of Tax Consultants. Indirect taxes also plays an important role for the growth of trade and industry.

The members of the All India Federation of Tax Practitioners have also been contributing towards the growth of the trade and industry by guiding not only their clients but also making efforts for the simplified tax laws for which the various representations have been made from time to time to different authorities so that the public at large may be benefited.

Hon’ble the Finance Minister while presenting the Finance Bill-2008 has assured that Central Sales Tax shall be reduced to 2% w.e.f. 1-4-2008. However, when nothing was heard for more than a month, after 1-4-2008 the Secretary General of AIFTP Shri Mukul Gupta, Advocate made a representation to Hon’ble the Finance Minister on behalf of the Federation pointing out the difficulties which was faced by the trade and industry in finalizing their various contracts by taking into consideration the Central Sales Tax of 2% only w.e.f. 1-4-2008.

The Ministry of Finance, Government of India, Department of Revenue have issued a Notification No. S.O. 1277 (E) dated 30-5-2008 in exercise of the powers conferred by the proviso to sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (74 of 1956) reducing the rate of tax as specified in sub-section (1) of section 8 of the said Act from three per cent to two per cent with effect from 1st June, 2008.

It is desirable that the notification of 30th May, 2008 reducing CST should have been made applicable from 1st April, 2008 instead of 1st June, 2008

The rate of CST on inter-State sale of goods to registered dealers (against Form C) shall now be the lower of 2 per cent and the rate of VAT or State Sales Tax applicable. This reduction forms a part of the roadmap for phasing out CST completely by 31st March, 2010 in preparation of introducing Goods & Services Tax (GST), the roadmap which is being worked out by the Enforced Committee of State Finance Ministers together with Union Finance Minister.