Sales Tax Instructions

Sales Tax Instructions, 2009
that all persons providing telecommunication services under the new regime are
registered (effective form 1 st July 2006).
(iii) The rate of excise duty on insurance services ahs been increased from 3% to 5%
which shall be charged on gross premium of all insurance services except life
insurance (effective from 1 st July 2006).
(iv)
(v)
(vi)
(vii)
The retails price of cigarettes has been increased by 7% which will be effective
immediately.
The excise duty on lubricating oil shall be chargeable on the 10% of the retail
price with immediate effect.
To provide relief to the public, excise duty has been abolished on travel by train
with immediate effect.
Excise duty on lubricating oil manufactured from reclaimed oil has been reduced
from Rs.5/- per liter to Rs.2/- per liter while a uniform rate of Rs.2,000/- PMT
shall be leviable on all grades of asphalt/bitumen with immediate effect.
II.
(i)
SALES TAX (REVENUE & RELIEF MEASURES);
The exemption of sales tax vide S.No.40 of the Sixth Schedule to the Sales Tax
Act, 1990 on computer hardware including parts thereof has been withdrawn and
w.e.f. 6 th June, 2006 computer hardware including computer parts falling in PCT
heading 8471 and 8473 shall be chargeable to sales tax @ 15%. The Collectors
shall ensure the sales tax registration of computer manufacturers and
wholesalers/retailers dealing in computer hardware.
(ii) The value of taxable supply of locally produced coal has been fixed at Rs. 650/-
PMT to collect a specified amount of sales tax of Rs. 100/- per tone in lieu of
15% sales tax with no input tax adjustment for the persons making supplies of
coal (affective from 1 st July, 2006).
(iii)
(iv)
The scope of Third Schedule items chargeable to sales tax on retail price basis
has been rationalized. Tissue papers & toilet papers, packed snacks including
potato chips shoe polish/shoe creams, spices and bulbs /tube lights have been
included in the Third Schedule while footwear has been excluded from it. The
Collectors should immediately inform the manufacturers of the newly included
goods in the Third Schedule about the charge so that they are able to fulfill the
conditions effective from 1 st July, 2006).
For the purpose of assessment of sales tax at import stage, the minimum value
addition in respect of items listed in the Thirds Schedule has been prescribed at
15% if imported by commercial importers (effective from 1 st July, 2006).