Check sibling questions

Different Sales tax incentives are available by State Government for the development of the state

 

These are of 3 types

  • Exemption from tax
  • Deferment of tax liability
  • Remission of tax

Type of Sale tax Incentive

Examples

Exemption from tax

 

On certain goods, VAT is exempt (tax free)

Also upto certain turnover, VAT is not payable

Deferment of tax liability

 

Tax collected from customer

But not paid to government immediately

 

It is deferred and paid after certain period or paid in instalments

Remission of tax

 

Tax collected from customer but it is not to be paid to government

 

Also refund of input vat available

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi and Kerala.