The amount of central sales tax, interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupee*.
where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored.
Exam Questions
Question 7
Mr. Mohandas, a first stage dealer of a machine in the State of Maharashtra, furnishes the
following data:
| S.No. Particulars | Rs. |
| (i) Total inter-State sales during current financial year (CST not shown separately) | 93,87,000 |
| (ii) Above sales include: | |
| Dharmada | 9,00,000 |
| Freight (` 1,20,000 is not shown separately in invoices) | 3,20,000 |
| Cost of corrugated boxes specially designed for packing of the | 56,000 |
| machinery | |
| Installation and commissioning charges shown separately | 52,000 |
Determine CST payable assuming that all transactions were covered by valid ‘ C‟ Forms and
sales tax rate within the State is 5%.
View answer
Computation of Mr. Mohandas’s CST payable
| Particulars | Rs. | Rs. |
| Total inter-State sales | 93,87,000 | |
| Less: Freight shown separately in the invoices [Note-2] | 2,00,000 | |
| Installation and commissioning charges shown separately | 52,000 | 2,52,000 |
| [Note-3] | ||
| Turnover including CST | 91,35,000 | |
| CST payable = 91,35,000 × 102/2 (B) [Note-4] | 1,79,118 |
Notes:
1. Dharmada and cost of packing material are includible while calculating turnover.
2. Freight charges of ` 1,20,000 are not deductible while calculating the turnover as they
are not shown separately in invoices. Remaining amount of freight, shown separately in
the invoices, is deductible.
3. Installation and commissioning charges are deductible while calculating the turnover
since shown separately in the invoices.
4. The CST on transactions covered by valid „C‟ Form is 2% or the sales tax rate within the
State, whichever is lower. Since, in this case, the State sales-tax rate is higher than 2%,
the rate of CST is taken as 2%.