Major changes in central sales tax rules

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: We procure our major raw material through trading companies based in Mumbai against the C-form. Of late, all these suppliers have started demanding the C-form within one month, otherwise they do not supply the material. They say sales tax rules have changed. But the state sales tax department usually issues the certificate once in a year, that too after a lot of hassles. Please guide us

— Trikha Steel Furniture, Baddi, Himachal Pradesh

There has been a major change in Central Sales Tax Rules as regards the C-form, vide notification no.588 (E) dated 16.09.2005 and w.e.f. 01.10.2005. As per this new rule, the CST declaration form-C will now have to be issued for every quarter of the financial year, starting from 01.10.2005 (instead of one C-form per financial year). The C-forms for each quarter will have to be collected and given to the sales tax department by the end of the next quarter.

Further, from 2006-2007 onwards, four separate C-forms will be required i.e. one separate C-form to cover transactions (if any) made in each quarter of the financial year. The penalty for non-submission of forms by the prescribed due date has been made stringent. If the C-forms are not sent by the due date, then the concessional rate of CST (4%) is not applicable; the full CST rate of 10% is applicable. This difference of 6% CST has to be immediately paid by the dealer to the sales tax department.

The departments have started issuing the C-forms. However, many officials at the local sales tax offices are not aware of the new provisions. You may bring the copy of the notification to their notice. See details under ‘national flash’ at http://www.smenetwork.net.

We are an NGO working in tribal areas of Orissa. We have, for the first time, got an export order for dried leaf-plates from France. But they have asked us to get a phyto inspection certificate. What is this certificate and who issues it? How do we get it?

—-Sundergarh Tribal Welfare Society, Sundergarh, Orissa

The certificate is issued by the directorate of plant protection, quarantine and storage, under the ministry of agriculture. The Plant Quarantine Service within the directorate is meant to prevent the entry, establishment and spread of exotic pests in India, as per The Destructive Insects & Pests Act, 1914 and the notifications issued under it.