1. 1 WELCOME Central Sales Tax An Overview dated the 17th December 2014 By Rakesh Garg, FCA

2. Rakesh Garg, FCA 2 Sales Tax Intra-State or Local – Movement of goods within a State – called as VAT– Entry No. 54 / List II / Sch. VII of COI Inter-State – Movement of goods from one State to another – Called as CST – Entry No. 92A/ List I / Sch. VII of COI Type of Taxes On Sales in India

3. Rakesh Garg, FCA 3 CST Act derives powers from entry 92A / List 1 / Sch. VII of C.O.I read with Article 269 & 286 reads as “Taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce” The Parliament had passed the CST ACT with a view to - 1.Formulate the principles for determining as to when a sale or purchase of goods takes place - (i)in the course of inter-State trade or commerce; or (ii)outside the State; or (iii) in the course of import in India or export from India. Purposes of Central Sales Tax Act

4. Rakesh Garg, FCA 4 2.To provide for levy of collection and distribution of taxes on sale of goods in the course of inter-State trade or commerce; 3.To declare certain goods of special importance in the inter-State trade or commerce; 4.To specify the restrictions and conditions in respect of State laws which impose taxes on the sale or purchase of such goods of special importance. It is not a tax on inter-State movement; it is a tax on “sale” which is deemed to have takes place in the course of inter-State movement. Purposes of Central Sales Tax Act

5. Rakesh Garg, FCA 5 CST is an Act of the Parliament It contains Seven Chapters with 26 sections Chapter II formulates principles when a sale is termed as inter-State sale, export or sale in the course of import Chapter III contains the charging section and exemption to stock transfers and subsequent sales (subject to conditions) Ch. III also contains provisions for Registration, Determination of Turnover, Rate of Tax and Penalties Chapter IV contains list of declared goods and restriction on States in respect thereof Ch. VA and VI relates to resolving disputes between two States in respect of levy and situs of tax Structure of Central Sales Tax Act

6. Rakesh Garg, FCA 6 Sec. 13(4) read with Art. 269 of COI – CST is collected and assigned to the State, who collects the same Rates of CST depends upon the relevant State VAT Rate Central Sales Tax (Registration & Turnover) Rules by the Central Government containing Rules for - Registration, Amendment and Cancellation of RC Obtain, issue & maintenance of Central Statutory Forms CST (State) Rules prescribe various procedures and Returns – As per Section 13 of the CST Act, all procedures including returns, assessment, interest & Penalty – State VAT Procedures to apply Structure of Central Sales Tax Act

7. Rakesh Garg, FCA 7 It is a tax on sale It is not a tax on inter-State movement Though it is a Central Tax – But it is collected and retained by the State from where movement of goods commences “Sale” of goods shall be deemed to take place in the course of inter-State trade or commerce, if Occasions the movement of goods; or Transfer of documents of title during movement of goods A sale within the State, which is not an inter-State sale or export or import, is a ‘intra-State sale’ Tax generally depends upon location of goods – That is, state where invoice is raised is immaterial Central Sales Tax Act – In Brief

8. Rakesh Garg, FCA 8 Meaning of “Sale” Meaning of sale (Sec.2(g)) and its ingredients - Two persons transfer of property in goods by one person to another For cash or deferred payment or any other valuable consideration. Six types of deemed sales also included in definition of sale - Transfer of property otherwise than sale Hire Purchase – at the time of delivery of goods Goods involved in Works Contract Transfer of right to use goods (Leasing) Supply by Clubs and association to its members Supply of food and beverages along with services

9. Rakesh Garg, FCA 9 Central Sales Tax – Meanings of Terms Sale price is defined in sec. 2(h) “sale price” means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged Freight & Insurance – Tax to be levied on sale price Whether form part of sale price – India Meters Ltd. – 34 VST 273 (SC)

10. Rakesh Garg, FCA 10 Central Sales Tax – Meanings of Terms Meaning of “goods” u/s 2(d) – Movable Goods “goods” includes all materials, articles, commodities and all other kinds of movable property, except newspapers, actionable claims, stocks, shares and securities Taxable event of sale – At the time of transfer of ownership - Necessary for accounting, CST returns and issuance of forms Deeming fiction – Inter-State sale to override over local sale Purpose of section 3 is to define inter-State sale, even though sale completes in accordance with section 2(g) and even though the situs of sale will fall in one of the State

11. Rakesh Garg, FCA 11 Central Sales Tax Act – Section 3(a) Sale occasions movement from one State to another – 3(a) The Supreme Court, in the case of Balabhadas vs. State of Orissa (1976) 37 STC 207, pointed out the following conditions for treating a sale as an inter-State sale: - (A) There is an agreement to sell which contains a stipulation, express or implied, regarding the movement of the goods from one State to another; (B) In pursuance of the said contract, the goods in fact moved from one State to another; and (C)Ultimately a concluded sale takes place in the State where the goods are send which must be different from the State from which the goods moved.

12. Rakesh Garg, FCA 12 Central Sales Tax Act – Section 3(a) Sale occasions movement from one State to another – 3(a) Agreement to sell for movement of goods from one State to another, either express or implied; Physical Movement of goods from one State to another – Mere passing through another State is not enough; Sale to conclude in the Other State; Property may pass in either State. No difference between existing goods & unascertained goods – SC – Two mixtures moving from other State, Mixed and delivered at the buyers place - ISS

13. Rakesh Garg, FCA 13 Central Sales Tax Act – Section 3(a) Sale occasions movement from one State to another – 3(a) Purchasers coming from other States – Counter Sale – Can it be ISS – Depending upon facts – Goods must move from one State to another in pursuance of contract of sale Parties within the State; Goods dispatched to some other State as per contract - An ISS Sale (STC, Orissa) – However, use section 6(2) to avoid double CST (2%) Unfructified Sale – Not taxable

14. Rakesh Garg, FCA 14 Central Sales Tax Act – Section 3(a) Sale occasions movement from one State to another – 3(a) Personal delivery not barred – Telco (SC): DCM (SC); Co-op. Sugar (SC); Motorads (Delhi); Pandiya Vishwanath (All) Name of consignee on the GR – May be self Significance of GR /RR - To substantiate the inter-State sale Documentary evidences in the absence of GR/RR: - Purchase Order, Sale Invoice, Entry Forms, Toll Receipt, etc.

15. Rakesh Garg, FCA 15 Central Sales Tax Act – Section 3(a) Sale occasions movement from one State to another – 3(a) Interception of branch will not convert the inter-State sale into local sale. (K.G. Khosla, IOCL, Sidhartha Apparel) – Stock transfer vs. Inter-State sale Sidhartha Apparels (P) Ltd. (2008) 13 VST 222 (CSTAA) The appellant was manufacturer of the branded goods in Chennai in the name of “park avenue”. On the facts, it was held- (a)When goods are packed in cartons for specific named customers of other States, and moved to its branch of other State for delivery to customers, it is an ISS from Chennai.

16. Rakesh Garg, FCA 16 Central Sales Tax Act – Section 3(a) Sidhartha Apparels (P) Ltd. (2008) 13 VST 222 (CSTAA) (b) If goods have moved to outstation branch for the purpose of effecting the sale in the routine course of its business as when customer approaches to the branch, then the mention of the customers’ name on the cartons would be meaningless, and it would remain as stock transfer. (c) Where goods are marked for outstation customer, but ultimately sold to other customers since the original customer did not take delivery of goods, it is not an inter- State sale from Chennai because goods had not moved from Chennai at the instance of that new customer. (d)If goods are marked for customers outside India, it will not be treated as inter-State sale from Chennai.

17. Rakesh Garg, FCA 17 Sale by transfer of documents of titles during movement of goods– 3(b) – Meaning of “during movement of goods” Meaning of “documents of titles” – G.R., L.R., R.R., B.L. etc. Unfructified sale u/s 3(a) – Sec. 3(b) may be used Transfer of goods by the dealer to his branch in other State; and sale during movement by transfer of documents of title ISS u/s 3(b) when seller and buyer are within same State Time of transfer – Arjan Das (Delhi); P.U. Usha (Ker) Clause (a) and (b) of Section 3 are mutually exclusive and distinct – No chance of overlapping Central Sales Tax Act – Section 3(b)

18. Rakesh Garg, FCA 18 Central Sales Tax Act – Section 3(b) Sale by transfer of documents of titles during movement of goods– 3(b) – Property in goods must transfer during movement of goods TISCO vs. R. Sarkar (1960) 11 STC 655 (SC) [also A&G Projects (SC); Chem-Dyes (Guj)] - Sale contemplated by clause (b) is one which is effected by transfer of documents of title to the goods during their movement from one State to another. Where the property in the goods has passed before the movement has commenced or after the movement from one State to another has ceased, it would not be covered by clause (b) of section 3

19. Rakesh Garg, FCA 19 Sale by transfer of documents of titles – 3(b) – Manner of “transfer” – Endorsement or Delivery of documents - section 2(4) of the Sale of Goods Act, 1930 as, “The phrase ‘Documents of title to goods’ includes a bill of lading, dock-warrant, warehouse-keeper’s certificate, wharfinger’s certificate, railway receipt, warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods there by represented Authorization letter - No Central Sales Tax Act – Section 3(b)

20. Rakesh Garg, FCA 20 When a sale or purchase to take place inside a State, such sale shall be deemed to be a sale outside all other States When a sale is deemed to take place within a State: - in the case of specific or ascertained goods, at the time the contract of sale is made; and in the case of unascertained or future goods, at the time of appropriation It is subject to the provisions contained in section 3 Sale Outside the State

21. Rakesh Garg, FCA 21 Section 5(1) of the Central Sales Tax Act: - (i) Direct Export (ii) Transfer of documents of title when Goods are in movement Goods must move from one country to another legally. Property may pass in either country Sale to foreign embassy in India or sale against foreign exchange in India or sale at duty free shop in India is not export. Sale in the Course of Export

22. Rakesh Garg, FCA 22 Section 5(3) has been enacted to extend the exemption from tax liability under the Act, not to any kind of penultimate sale but only to such penultimate sale, which satisfies, all the following conditions:- (a)Such sale to the exporter must be made after the agreement by exporter with the foreign importer in relation to such export is entered into; (b)Sale must be made for the purpose of complying the terms of an agreement in relation to an export, i.e., the exporter must have the confirmed orders; Judgment by SC in Azad Body Builders Penultimate Export

23. Rakesh Garg, FCA 23 Conditions for availing exemption (contd..) (c)Same goods must be exported i.e., deduction under this section is not available for raw material used in the production of goods to be exported. However, packing and re-packing of the goods does not alter the substance and still exemption can be claimed u/s 5(3); and (d)Person making such sale shall obtain a certificate, in form “H” in the CST Act from the exporter. Form H is mandatory Penultimate Export

24. Rakesh Garg, FCA 24 As per section 5(2) of the CST Act, a sale or purchase of goods is deemed to be in the course of import of goods into territory of India only if: - (i) sale or purchase occasions such import; or (ii)sale or purchase is effected by transfer of documents of title to the goods before the goods have crossed the custom frontiers of India. The course of import of goods starts at a point when the goods cross the customs barrier of the foreign country and ends at a point in India after the goods cross the customs barrier. Sale in the course of Import

25. Rakesh Garg, FCA 25 FIRST LIMB – OCCASIONS THE MOVEMENT Sale must occasion the import There must be an integral connection or inextricable link between first sale following the import and the actual import An obligation to import may arise from statute, contract or mutual understanding or nature of the transaction Links between sale to the import, which cannot, without committing a breach of statute or contract or mutual understanding, be snapped DISTINCTION – K.G. KHOSLA VIS BINANI BROS. NTPC case by S.C. – Indure Ltd. – 34 VST 509 Sale in the course of Import

26. Rakesh Garg, FCA 26 SECOND LIMB - HIGH SEAS SALE When the goods are sold before these cross the customs frontiers of India, i.e. after crossing the customs barrier of foreign country but before crossing the customs station of India, these types of transactions are also covered by section 5(2) of the CST Act. These kinds of sale are popularly known as “high sea sale”, where sale is effected by endorsement on documents when the goods are on high seas. Sale of imported goods at duty free shops beyond the customs area - To be treated as High Seas Sale – SC in Hotel Ashoka (3.2.2012)- To be applied to Bonded Warehouse also. Sale in the course of Import

27. Rakesh Garg, FCA 27 Sale in the course of Import Documentation - High Seas Sale In every High Seas Sale transaction, following documents should be raised / endorsed and delivered when the consignment is on “HIGH SEAS” :- a.Offer for sale of goods on high seas; b.Acceptance of offer – agreement to sale; c.Endorsed Bill of Lading in favour of buyer; d.High Seas Sales Invoice in favour of buyer. e.Bill of entry in the name of High Seas purchaser; f.Payment of customs duty by the HS Purchaser.

28. Rakesh Garg, FCA 28 Subsequent Central Sales u/s 6(2) What are E-I/E-II Transactions :- What are E-I/E-II Transactions :- Two sales; First sale should be ISS either u/s 3(a) or 3(b) and Second sale u/s 3(b); There must be movement of goods from one State to another; Transfer of documents of title to the goods during movement; Therefore, sale should take place before taking delivery from transporter; Second sale must be made to the registered dealer. Generally, this section relates to sale of Standard Goods

29. Rakesh Garg, FCA 29 Subsequent Central Sales u/s 6(2)

30. Rakesh Garg, FCA 30 Subsequent Central Sales u/s 6(2) What are E-I/E-II Transactions (contd…) To claim full exemption, second seller must obtain - -Form E-I from the first seller; and -Form C from the subsequent purchaser. In the absence of Form C, taxable at full rate; In the absence of Form E (Form C received), concessional rate. Subsequent sale can take place within the State. Subsequent booking – not allowed- Mahaveer Chemical (2012) 49 VST 200 (Mad)

31. Rakesh Garg, FCA 31 Subsequent Central Sales u/s 6(2) What are E-I/E-II Transactions (contd…) Goods are exempt from VAT in the State of dispatch – Still exempt in the state of second sale-Delhi HC in Mitsubishi Corp. To avoid litigation – It must be a completed sale during movement – Unconditional – To eliminate agreement of sale Ideal procedure to be followed – GR should be in the name of first purchaser – First seller would give his Invoice & Bill to the first purchaser; who would give GR along with his Invoice to the Second Purchaser Pre-determined buyer vs. Pre-determined sale: ………… Judgment by Supreme Court in A&G Projects MMTC -111 STC 434 (SC); J.V. Gokal – 11 STC 186 (SC)

32. Rakesh Garg, FCA 32 S.C. in A&G Projects dt. 11.12.2008 (Read with Kar. HC) A (Manufactr.) (UP) B (contractor) (supply + Installation) or (Supplier) (Delhi) C (Contractee/ End User) (Delhi) Transaction of SPECIFIC goods or Standard Goods with prior contract among A, B & C or Goods dispatched by A directly to C Sale by B to C is not 3(b) sale, Sec.6(2) not applicable Sale by B is also 3(a) sale, taxable in U.P. (not in Delhi) Sale by A to B is 3(a) sale, without dispute

33. Rakesh Garg, FCA 33 A (Manufactr.) (UP) B (contractor in Delhi) (supply + Installation) or (Supplier in Delhi) C (Contractee/ End User) (Delhi) Transaction of STANDARD goods – No prior contract between B & C; Goods sold in transit B can issue Form ‘C’ to A Sale/WC by B to C is taxable in Delhi as inter-State sale; However can be exempted thr. E-I Sale by A to B is 3(a) sale, without dispute S.C. in A&G Projects – Contd…

34. Rakesh Garg, FCA 34 Subsequent Central Sales Pre-identified buyers: Y obtained orders from buyer Z, outside the State and entered into agreements of purchase with X, the manufacturer - Delivery was to be given f.o.r. booking station. Goods sold under these specific contracts were booked at a specific railway station in Tamil Nadu to Z outside the State. X never gave physical possession of the goods to Y and handed over the documents of title to Y, who in turn endorsed in favour of Z. Held that there were two sets of sales (i) sales by X to Y; and (ii) sales by Y to Z. The second set, viz., the sales by Y to Z was ISS and Y having furnished the requisite certificates was exempt from tax u/s 6(2)(b). [Dharangadhara Trading Co. (1988) 70 STC 92 (SC); Vinay Cotton Waste Co. (1986) 63 STC 391 (Mad); State of T.N. vs. Hydels Engineers (P) Ltd. (2010) 35 VST 262 (Mad)]

35. Rakesh Garg, FCA 35 Subsequent Central Sales Pre-identified buyers: The appellant, having its place of business in State X, entered into an agreement with a mill situated within the State Y for sale of cotton. The appellant, in turn, placed orders with its sellers at Bombay for purchase. Bombay sellers despatched goods to Mill as consignee and sent the RR to appellant, who endorsed the same in favour of Mill. Appellant contended that the consignments were sent directly by the Bombay seller to the mills and, therefore, these were direct ISS by the Bombay seller to the mills and that the property in the goods passed to the mills when the goods were loaded at Bombay. However, it was held that the sale by the Bombay seller to the appellant was an ISS u/s 3(a) and the transaction of sale by the appellant to the mill may be assessed u/s 3(b). [G. A. Galiakotwala & Co. (P.) Ltd. (1976) 37 STC 536 (SC-3J)]

36. Rakesh Garg, FCA 36 Movement of goods from one State to another by a dealer to his other place of his business or to his agent or principal; Goods would include even the consumables & capital goods Goods moving to out-state Godown Exempt against Form F – Mandatory Burden of proof with transferor– to prove whether - Goods are moving to the branch not in pursuance of sale agreement with the third party the agent to whom goods are transferred is not a principal buyer [i.e. transfer must be from ‘P’ to ‘A’] Amendment in the Central RC for addition of branch Goods need not be specified in the RC of transferor/transferee Stock Transfer u/s 6A

37. Rakesh Garg, FCA 37 Failure to Furnish Form F – Deemed as inter-State Sale Taxable Event – Date of dispatch If deemed as ISS (generally in the case of transfer to agent) - Form C can be obtained from the transferee branch even if they are same person – Provided the recipient State considers it as ‘deemed purchase’ – And goods are included in the RC of the transferee Value of Form F: Whether shortfall in the value of Form F and the sale value be questioned by the AA of the receiving State Stock Transfer u/s 6A

38. Rakesh Garg, FCA 38 Maintain Records as prescribed in State CST Rules Documentary evidence : – 1. Dispatch proof; 2. Agents records; 3. Sale patti; 4. Agreement with agent; 5. Statement of account and Copy of ledger; 6. Conduct between the Parties Power of Reassessment to the AA on the ground of discovery of new facts; and Revision to a Higher Authority on the ground that the findings of AA are contrary to law [Sec. 6A(3)] Opportunity to furnish Form C, if stock transfer is rejected and assessed as ISS (Sawhney Steel – SC) Stock Transfer u/s 6A

39. Rakesh Garg, FCA 39 Inter-State transfers to Third Party for Job Work : - Sale pertains to those goods which are used in the contract by the job worker and transferred to the contractee CST shall be charged by the job worker in the other State Form F shall be furnished in those cases also where goods are transferred for processing or job work to other States – Ambica Steel (All) Supreme Court, without interfering Ambica Steel, allows time to submit forms Later, Allahabad HC in ACPL Jewels held that AA to complete assessment on merits, if the assessee fails to submit forms Stock Transfer u/s 6A

40. Rakesh Garg, FCA 40 Liability and Registration If liable to pay CST - Mandatory Registration u/s 7(1) As per sec. 6(1) – Subject to other provisions of the Act - Liable to pay tax on ALL ISS except electricity energy Voluntary Registration u/s 7(2) – Benefit of registration If selling only the exempted (Schedule 1) goods locally and in inter-State trade – No liability of CST registration If making central purchases; No ISS –– No liability of CST registration; Liable under State Act depending upon the Taxable quantum based upon the State Provisions

41. Rakesh Garg, FCA 41 Liability and Registration Rectification in RC - Items not allowed originally without discussion – Rectification Application should be within reasonable time; otherwise objection/appeal Amendment in RC – Change in goods, traded, place, ownership Amendment – Suo moto (or) upon application Effective date of registration / amendment relating to goods – Relevant for issuance of Form C – Can amendment take place retrospectively after paying late fee? Power to ask for Security for registration/amendment

42. Rakesh Garg, FCA 42 Issuance of Form C by the Purchasing dealer Goods (or class of Goods) should be prescribed in RC of the purchasing dealer Purpose of purchase should also be specified in RC Purchase after the date of registration/amendment Purpose of purchase should be specified on Form C Goods must be used only for that purpose Special care must be taken in case of works contractors and dealers engaged in transfer of right to use goods Goods once included in RC – AA cannot object subsequently - 116 STC 623 (Raj); 62 STC 374 (Raj); 5 VST 529 (SC) Form ‘C’ and Purchasing Dealer

43. Rakesh Garg, FCA 43 Form C by the Purchasing dealer – Purposes Resale Manufacturing or processing of goods for resale Mining Telecommunication Network Generation or distribution of electricity or any other form of power Form ‘C’ and Purchasing Dealer

44. Rakesh Garg, FCA 44 Issuance of Form C by the Purchasing dealer Nature of Items – Rule 13 of CST (R&T) Rules : Raw materials, Processing materials, Machinery, Plant, Equipment, Tools, Stores, Spare parts, Accessories, Fuel or lubricants. Form ‘C’ and Purchasing Dealer

45. Rakesh Garg, FCA 45 Issuance of Form C by the Purchasing dealer Manufacturer - A process of activity is so integrally related to the ultimate manufacture of goods so that without that process or activity manufacture may, even if theoretically possible, be commercially inexpedient – Yes - J.K. Cotton (SC) Building Material by manufacturer– No Delivery Vehicles / Trucks – Depends Visicoolers (Refrigerators) for Pepsi – No Electrical Equipment – Depends Generator – If used for manufacture – Yes Manufacture loss – Yes if normal ; Goods destroyed – No Purchase of goods for manufacture of exempted goods - Yes Form ‘C’ and Purchasing Dealer

46. Rakesh Garg, FCA 46 Issuance of Form C by the Purchasing dealer Manufacturing in Other States – Yes Purchase for future business – Yes Fans, Coolers, Air-conditioners, Office Stationery, Books, Cars used for office purpose – No Packing Material specified in RC – Yes Packing material (even if not specified in RC) for goods specified in RC – Yes Works contract ; Hire Purchase; Lease – Yes Purchase of goods to be used for gift – No Purchase of goods for sample – Depends – Ruby Lab (Guj) Form ‘C’ and Purchasing Dealer

47. Rakesh Garg, FCA 47 Amount of C Form – Whether to include freight and sales tax One form for transaction taking place in one quarter Monetary limit of single form – No ceiling If seller has booked sale in qtr. I and buyer in qtr. II and issued form accordingly – Reconciliation Form C can be issued from some other state where purchaser is registered – If he is unregistered in purchasing State Form F – Transactions in one month Loss of form either by the purchaser or seller- Obtain duplicate from the Department – Indemnity Bond in Form G. Form ‘C’ and Purchasing Dealer

48. Rakesh Garg, FCA 48 Duty to ascertain whether goods are specified in the RC of the purchasing dealer – Take copy of RC No duty to verify the use of goods by the purchaser Single Form for sales made in multiple quarters - No Furnishing of photocopies of the Form – Depends upon State provisions Furnishing of forms at the time of assessment as per State Rules Forms before Appellate Authorities – Sufficient Cause Opportunity to remove defects in the Form Form ‘C’ and Selling Dealer

49. Rakesh Garg, FCA 49 Significance of Documents & Records Significance of documents, agreement and clause relating to transfer of property in goods Local sale vs. Inter-State Sale Works contract vs. Normal Sale; Works Contract vs. Leasing; Leasing vs. Hire Purchase; Sale in the course of import Is raising of invoice – A conclusive evidence of sale - No

50. Rakesh Garg, FCA 50 To Summarize Decide whether the transaction is a sale in terms of definition of the term “sale” (including stock transfers) Whether it is Central sale (or) Export (or) Sale in the Course of import If it is central sale, then taxable under the CST Act. Place of transfer of ownership is irrelevant Ascertain whether it is exempt u/s 5(2), 5(3), 6(2) or 6A If taxable, determine the rate of tax as per section 8 Pay tax and file the return as per the State VAT provisions Take benefit of Form C and others forms as per the law

51. Rakesh Garg, FCA 51 Be careful in local vs. ISS Transactions; Analyze the transaction before applying the provision; To repeat, be careful in drafting of contracts and maintenance of records as per the contract; When making any planning, consider all the Five legislatures together, i.e., VAT/CST, Service Tax, Excise Duty, Income Tax and Stamp Duty – Sometimes cost of Planning is more than the cumulative tax saving. Precautions

52. 52 THANK YOU Rakesh Garg, FCA S S A R & ASSOCIATES, N. DELHI (Author of Concepts of CST, Delhi VAT & GST ) Ph: (011) 65960912-13, 9810216270