Sales Tax Instructions

Sales Tax Instructions, 2009
Column No. 10
You, as the registered person, the Chief Executive/ MD of the registered business
or any other person authorized by you should sign the declaration. The person
signing this declaration should write his/her full name and designation in capital
letters. He should also affix the office stamp of the registered person/business.
The date on which the return is submitted in the bank should also be clearly
written in this column.
Column No. 11
You do not have to write anything in this Column.
Column No. 12
Here, you would write in this Column the exact amount of sales tax being paid by
you. This should be the same as entered in this Column-08. The bank will not
accept the return unless this amount is deposited along with the return.
Column No. 13
You would write in words the amount entered in Column-12. For example, if you
are paying Rs. 1000/-, you will write ―one thousand only‖ in this Column. The
serial number will be assigned by the bank Cashier/ Clerk and the Cashier/ Clerk
would also stamp return after receipt of the amount from the taxpayer.
2. What is input tax?
Input Tax is the sales tax paid by you on your purchases for your taxable business
activities. This can be calculated for a particular tax period by adding the total amount of
tax from the purchase invoices entered in the purchase register during the relevant month.
No credit for input tax is admissible where the purchases were made for your exempt
activities. If purchases were made partially for your taxable activities and partially for
your exempt activities, input tax on such purchases should be apportioned. However,
stocks in hand on the day of withdrawal of exemption on your supplies will be entitled
for input tax credit if they had been acquired within one month of the registration.
3. What is output tax?
The amount of sales tax charged by you during the month on your supplies is the output
tax. This can be calculated by adding the total amount of tax from your copies of the sale
invoices entered in the sale register.
4. What is Nil return?
When the output tax is exactly equal to the input tax, the value you enter in Column-08
and Column-12 is nil. In such case also, you will be submitting a return in the bank.
However, it would be a ―nil‖ return. Another occasion of a ―nil‖ return can be when you
have done no business during the month, i.e., you neither purchased any sales taxable
goods, nor supplied any such goods. Nevertheless, a return has to be submitted by you.
5. What is a final return?
A final return is submitted to the Collector along with an application for de-registration.
Usually, when a going concern is sold out to another person or liquidation is taking place
in respect of a certain business, the business has to be de-registered and a final return in
respect of liabilities of sales tax, etc., is to be filed with the Collector.
6. What if I commit a mistake and discover after I have deposited the tax?
It should be immediately reported to the Collector of Sales Tax of your area of
jurisdiction. There are penalties for under-paid tax.