Tax World

Sales Tax

P. C. Joshi, Advocate

News from Andhra Pradesh

The Government of Andhra Pradesh, by Notification dated 4th April 2008, has notified that under sub-section (5) of Section 8 of the Central Sales Tax Act 1956, no tax shall be payable by any dealer for sales of the ‘Coconut’ effected by him to a registered dealer in the course of inter-state trade or commerce. The notification is made effective from 1st April, 2008.

Source : News & Views, APSTBA, Vol – 34, Page 12.

News from Haryana

The Haryana Government introduced the entry tax on entry of goods into the local area for the purpose of development of trade, commerce and industry, as also for creation and maintenance of infrastructural facilities for free flow of trade and commerce in the State.

Source : Punjab & Haryana Taxes, Vol. 31 Part-9, Page 105

Note :- Whether such a levy can be considered as compensatory is a moot question to be pondered by the members).

News from Tamil Nadu

By Notification dated 1st April 2008, the Governor of Tamil Nadu have reduced the rate of tax to 4% in respect of :

(i) Arecanut raw seeval

(ii) Mosaic chips

(iii) Files and folders made of paper board

(iv) Plastic photo frames

(v) Generators used for producing electricity

By another Notification of the same date, the tax on transfer of right to use the equipments used for construction purposes is also reduced to 4% on the condition that there would be no claim of input tax credit.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 14 No. 1, April 2008, Page Nos. 1 & 4.


Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, dated the 30th May, 2008

Notification

S. O. (E) – 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), the Central Government hereby reduces 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

[No. 1/2008-CST-F.No.28/11/2007-ST]

R. G. Chhabra
Under Secretary to Government of India