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Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEntrepreneurial Planning5 Marks
Question
What is sales tax?
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Answer

  1. Sales tax is levied on the sale of a commodity, which is produced or imported and sold for the first time.
  2. If the product is sold subsequently without being processed further, it is exempt from sales taxE.
  3. It is levied under the authority of both Central Legislation (Central Sales Tax) and State Governments Legislations (Sales Tax).
  4. The government levies Sales Tax principally on intra-state sale of goods.
  5. States also levy tax on transactions which are "deemed sales" like works contracts and leases. In addition to Sales Tax, some states also levy additional tax, surcharge, turnover tax, etc.
  6. Sales tax is recovered from the buyer as a part of consideration for sale of goods.

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