SUB.:- Sales Tax on carrying charges.
REF.:- 1) Order No.DDO/1189/ADM-5/306/B-12 Dated 26-5-95 of
                Commissioner of Sales Tax M.S.Bombay.
           2) CTN/ST/94-95/298 Dt.19-11-94

1. The Commissioner of Sales Tax, Maharashtra State Bombay, vide their Order No.DD0/1189/ADM-5/306/B-12 Dt.26-5-95 held that the carrying charges raised would formed part of sales price U/S 2(39) of the sales tax act liable to tax accordingly.

2. As regards the Tax on carrying charges on Sales effected to NTC and MSTC are concerned the above order is made effective from 1-5-1994.

3. Vide our circular No.CTN/S.TAX/94-95/287 of 19-11-94, it was informed to charge and collect Sales Tax on carrying charges etc. raised to NTC and MSTC Mills w.e.f. 1-6-89 and 1-7-91. However, now as per the order, the same need not be charges to NTC and MSTC up to 1-5-94 hence such Debit Notes if raised be cancelled and credit noted be issued to the party.  These should be transferred to party A/c.Section as per laid down procudure i.e., alongwith Transfersheet for August 1995 in routine manner.

4. The order further stipulates that the carrying charges levied to NTC and MSTC are taxable under the Sales Tax Act. w.e.f. 1-5-94.  Hence you have to raise additional Debit Notes for sales tax on such carrying charges to NTC and MSTC alongwith interest @2%p.m. and ensure its collection.  Such debit notes be send to NTC /MSTC latest by 31-08-95 and a single Credit Note from 1-5-94 to31-5-95 for Sales Tax and interest be sent separately to Sales Tax Department latest by 15-9-95. The party A/c. transfersheet of August, 1995 should also consisits of such debit notes seperately.

An early action is expected.

Joint Managing Director.