How will you determine the taxable turnover under the CST Act?

Contents
Taxable Turnover = Aggregate sales including CST X 100
100 + Rate of CST
CST = Aggregate sales including CST X Rate of CST
100 + Rate of CST

What is taxable turnover under CST Act How is it computed?

Exam Questions

Particulars Rs. Rs.
Taxable turnover (rounded off) [Rs. 42,75,000 × 100/102] 41,91,176
CST @ 2% [Rs. 42,75,000 × 2/102]
Since transactions are covered by valid ‘C’ Form, CST is 2%
or sales tax rate within the State (5%), whichever is lower, i.e., 2%

How is taxable turnover calculated?

The turnover of a business should be easy to determine with accurate records: add together the total sales for a given period. To determine the VAT taxable turnover, you would then need to subtract any amounts that can be excluded (are not subject to VAT).

What is the taxable event of central sales tax?

The taxable event for the purpose of levy of CST is inter-state sale or purchase of goods including works contract. Mere transfer of goods to a branch or another unit of the same person would not attract CST unless the movement takes place pursuant to a pre-determined sale.

What is turnover and taxable turnover?

Taxable Turnover means the Taxable value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all …

How is CST different from turnover?

The document Determination of Turnover – Central Sales Tax Act (CST), Indirect Tax Laws B Com Notes | EduRev is a part of the B Com Course Indirect Tax Laws.

Taxable Turnover = Aggregate sales including CST X 100
100 + Rate of CST
CST = Aggregate sales including CST X Rate of CST
100 + Rate of CST

How do you calculate CST?

CST rate for sale to unregistered dealer will be 12.5%. There is no difference in rate for sale to registered dealers.

Net Sales Rs. Sales Tax Rate Sales tax Payable
89,80,000 3% 2,69,400
1,20,000 12.5% 15,000
58,65,000 2% 1,17,300
Total Sales Tax 4,01,700

What is included in taxable turnover?

Taxable turnover is the total value of taxable supplies made by a person in the course or furtherance of business, excluding VAT (VAT Act 1994, section 19). This includes: The value of all standard rated, reduced rate and zero rated supplies of goods and services.

What is turnover with example?

Turnover is the rate at which employees leave or the amount of time that it takes for a store to sell all of its inventory. An example of turnover is when new employees leave, on average, once every six months. … Some common turnovers are accounts receivable turnover and inventory turnover.

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What is the rate of turnover tax?

Turnover tax is imposed on the supply of taxable goods and services by persons not registered for VAT. It is chargeable at 2 per cent on locally sold goods and 10 per cent on all other services (FDRE, 2002). Therefore, turnover tax collection performance can be affected by different factors.

What are the exemption of transactions from central sales tax?

Central Sales Tax Exemptions

Central Sales Tax is excluded if outward freight is charged separately and if the outward insurance of goods are passed on to a buyer during dispatch. No CST is to be paid if goods are returned within 180 days. CST is exempted in cases when a sale within a particular state is exempt.

Which of the following is a taxable event?

A taxable event is any action or transaction that may result in taxes owed to the government. Common examples of federal taxable events include receiving a payment of interest and dividends, selling stock shares for a profit, and exercising stock options. Receipt of a paycheck is a taxable event.

What is the taxable event under GST?

Taxable event is that on the happening of which the charge is fixed. It is that event which on its occurrence creates or attracts the liability to tax. The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business.

What is difference between turnover and aggregate turnover?

Difference between Aggregate Turnover and Turnover in a State :The aggregate turnover is different from turnover in a State. The former is used for determining the threshold limit for GST registration as well as eligibility for Composition Scheme.

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How is turnover defined?

Turnover can mean the rate at which inventory or assets of a business “turn over” a.k.a sell or exceed their useful life. It can also refer to the rate at which employees leave a business. But turnover in accounting is how much a business makes in sales during a period.

What is classed as turnover?

Turnover is the total sales made by a business in a certain period. It’s sometimes referred to as ‘gross revenue’ or ‘income’. This is different to profit, which is a measure of earnings. It’s an important measure of your business’s performance.