Sales Tax Instructions

Sales Tax Instructions, 2009
Only the registered persons who make taxable supplies are liable to deposit the monthly
return in the bank. However, those enrolled as payers of turnover tax are not to use this
form or deposit their six-monthly return in the bank. Moreover, brick kilns being under
fixed tax scheme, will also NOT use this form. They will deposit their tax as before.
The most frequently asked questions concerning the return have been answered in the
following paragraphs:-
1. What do the different Columns signify in a monthly return-cum-challan
form?
Column No. 01
In this Column you should write your Sales Tax Registration Number assigned
by the Sales Tax Collectorate.
Column No. 02
For the time being you would cross this Column as no TIN (Taxpayer
Identification Number) has so far been assigned to you. Such TINs will be
allotted by the Sales Tax Department to the taxpayers in due course along with
instructions regarding the date by which the scheme would be implemented.
Column No. 03
In this Column you will write the same name and address of your business as
written in the Registration Certificate issue by the Sales Tax Collectorate.
Column No. 04
In this Column you would write the month and the year for which the tax is being
deposited. Under the Sales Tax Act a taxpayer is required to pay his tax relating
to a particular month upto the 20 th of the following month. For example, the tax
return for the month of the May 1996 is required to be submitted between the 1 st
to the 20 th June, 1996. Therefore, in the return for May, 1996 (which will be
submitted during the period 1 st June to 20 th June, 1996), in this Column the
month will be 05 and the year will be 96.
Column No. 05
In some cases the amount of the sales tax paid by you on the goods purchased by
you in a month may be more than that due from you on the supply of goods by
you in that particular month. In such cases the input tax would be more than the
output tax and you will be not be liable to pay any tax. Instead, there will be sales
tax credit in your favour. If there is any such sales tax credit/ input tax in your
favour from the proceeding period the same would be entered in this Column. In
case you have already received a cheque for the tax credit in your favour in your
respect of the previous return, this Column should be crossed.
Column No. 06
In this Column you will enter the value, rate of sales tax leviable thereon and the
amount the sales tax due on the goods supplied during the tax period mentioned
in Column-04 of the return. In the space for ―rate‖ the relevant rate of sales tax,
for example 5 %, 15 % or 20 %, etc., will be entered. For items which are liable
to sales tax on the basis of printed retail price, the rate should be indicated as
―PRP‖. Description of goods of supplies during the tax period in not required in
any case. There are three types of goods mentioned in this Column i.e., taxable
goods, exempt goods and exported goods. In case of exempt and exported goods,
only value of these goods would be entered in the return. In case of taxable goods