| No. CST-1002/9/Adm-3
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Mumbai, 18th January,
2005
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| Circular
No. 2-T |
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| Sub
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:
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Amendment
to Central Sales Tax Act, 1956 (Act 74 of 1956)
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| Ref |
: |
The Finance
(No. 2) Act, 2004, No. 23 of 2004.
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Gentlemen/Sir/Madam,
In pursuance to the
Financial proposals of the Union Government for the financial year 2004-05
announced by the Hon’ble Union Finance Minister, in his budget speech,
certain amendments to the Central Sales Tax Act,
1956 (Act No. 74 of 1956) have been carried out. The finance bill
has been passed by the parliament and assented to by the President of
India on 10th September, 2004.
The salient features
of the amendment are explained below
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Sub-section 6
of section 8 is substituted; so that in addition to the earlier activities,
following activities of a dealer, registered
under Special Economic Zone are exempted from payment of tax
in respect of sales of any goods made by such dealer in the course
of inter-State trade or commerce.
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Activity
of setting up, operation, maintenance of an unit located in Special
Economic Zone
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Development,
operation and maintenance of Special Economic Zone by the developer
of Special Economic Zone.
For this purpose,
the registered dealer shall be authorized by the authority specified
by the Central Government to establish such unit or to develop, operate
and maintain such Special Economic Zone.
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Sub-section (8)
of the section 8 is also amended. Earlier the registered dealer certified
by the specified authority in the Special Economic Zone has to furnish
prescribed declaration obtained from the concerned State Government
to the Specified authority.
As a result of
this amendment, the registered dealer has to furnish the prescribed
declaration to the prescribed authority referred in sub-section (4)
of section 8 (Assessing authority) obtained from specified authority
of the Central Government.
The amendments
come into force w.e.f. 10th September 2004.
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This circular
cannot be made use for legal interpretation of provisions of law,
as it is clarificatory in nature. If any member of the trade has any
doubt, he may refer the matter to this office for further clarification.
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You are requested
to bring the contents of this circular to the notice of all the members
of your association.
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