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Answer Posted / s.n.dutta
CENVAT..(Central VAT)...A manufacturer of final product or
provider of taxable service shall be allowed to take credit
of duty of excise as well as of service tax paid on any
input received in the factory or any input service received
by manufacturer of final product.
CST (Central Sales Tax)... The tax is collected at one stage
of purchase or sale of goods. Therefore, the burden of the
full tax bond is borne by only one dealer, either the first
or the last dealer.
An Act to formulate principles for determining when a sale
or purchase of goods takes place in the course of
inter-state trade of commerce or outside a State or in the
course of imports into or export from India, to provide for
the levy, collection and distribution of taxes on sales of
goods in the course of inter-state trade of commerce and to
declare certain goods to be of special importance in
inter-state or commerce and specify the restrictions and
conditions to which state lawsimposing taxes on the sale or
purchase of such goods of special importance shall be subject.
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