Central Sales Tax

Taxes on sales or purchases of goods in the course of inter-State trade or commerce were brought expressly within the purview of the legislative jurisdiction of Parliament. Restrictions could be imposed on the powers of State legislatures with respect to the levy of taxes on the sale or purchase of goods within the State where the goods are of special importance in inter-State trade or commerce.

VAT/TIN/ Sales Tax

VAT is a multi-stage tax on goods that is levied across various stages of production and supply with credit given for tax paid at each stage of Value addition. VAT is the most progressive way of taxing consumption rather than business. VAT is a multipoint levy where the tax paid on local purchases from the registered dealer can be set off against the tax payable on the sale of goods, other than special goods. The registration number allotted to the dealers is popularly known as TIN i.e. Taxpayer Identification Number. This is an eleven digit number to be quoted in all VAT transactions and correspondence.