Tax | Why/When/for Who Calculated? | comments |
| Service Tax | on Services | Service tax is applicable under the Service Tax Act in respect of the nature and types of services which are defined in the Act. The liability to charge the correct rate of service tax is that of the service provider; in a few cases however the service recipient will become liable to charge service tax, but these cases are not relevant for this document. |
| Central Sales Tax (CST) | Inter-State Transaction on Products | Tax levied on the sale of goods in the course of Inter-State sales in India at a rate of 2%, if accompanied by a Form C. The rate, if not accompanied by Form C, is the State VAT Rate. While this is a federal tax, States are responsible for collecting and remitting this tax. Thus, there are state specific CST authorities in Sabrix.Form C is a document provided by the Buyer to the Seller, declaring that the goods are to be used for the following purposes:1. For Resale, or
2. As raw materials used for manufacturing or processing (including Machinery or Plant used for such manufacturing or processing)
3. As packing materials/containersCST is levied by the federal government and is collected and remitted by the State from which the movement of the goods commenced. |
| Value Added Tax (VAT) | Intra-State Transaction on Products | VAT is the indirect tax on the consumption of the goods, paid by its original producers upon the change in goods or upon the transfer of the goods to its ultimate consumers. It is based on the value of the goods, added by the transferor. Value added tax is not applicable to services in India. VAT is paid to the State government where the domestic purchase or sale is taking place. |
| Cess1 | Services | Non-cumulative taxes levied on service transactions within a state and between states calculated on the price of a service. The Education Cess is 2% and the Secondary and Higher Education Cess is 1%. |
| Cess2 | Services | Non-cumulative taxes levied on service transactions within a state and between states calculated on the price of a service. The Education Cess is 2% and the Secondary and Higher Education Cess is 1%. |
