8th floor, Vikrikar Bhavan ,
Mazgaon, Mumbai - 400010

TRADE CIRCULAR

No. CST-1002/9/Adm-3

Mumbai, 18th January, 2005

Circular No. 2-T  
Sub :

Amendment to Central Sales Tax Act, 1956 (Act 74 of 1956)

Ref :

The Finance (No. 2) Act, 2004, No. 23 of 2004.


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

  1. 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.

    1. Activity of setting up, operation, maintenance of an unit located in Special Economic Zone

    2. 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.

  2. 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.

  3. 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.

  4. You are requested to bring the contents of this circular to the notice of all the members of your association.

 

Yours faithfully,


( Vijay Kumar Agarwal)
Commissioner of Sales Tax,
Maharashtra State, Mumbai.