15. THE CENTRAL SALES TAX ACT-1956

According to our Constitution, taxing of sale or purchase of goods in the course of interstate trade or commerce expressly comes under the purview of Central Government. The Central Government is further authorised to restrict powers of State legislatures on the sale or purchase of goods within the State where the goods are of special importance in interstate trade or commerce.

This Act provides levy of interstate trade and commerce called Central Sales Tax. Every person who comes under the definition of Dealer as per this act, is liable to pay this tax. The act also defines in detail the meaning of inter-state trade or commerce and its exception.

All the dealers are to be registered with the prescribed authority. This tax is collected by dealer from purchaser. Only registered dealers are authorised to collect the tax. The dealer has to deposit collected tax to Sales Tax Department.

Section 14 of Act details the goods of special importance in interstate trade or commerce.

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