Summer training on cst

SURAJMAL LAXMI DEVI SAWARTHIAEDUCATIONAL TURST’S GROUP OF INSTITUTIONS

AN ISO 9001:2008 CERTIFIED INSTITUTIONAN INTERFRATED INSTITUTE FOR TECHNOLOGY AND MANAGEMENT

A

SUMMER TRAINING PROJECT REPORT

ON

LEGAL COMPLIANCE OF CST IN REFERENCE OF

CENTURY PULP & PAPER LTD

Submitted in Partial Fulfillment of The Requirement of The Award of Degree inMaster of Business Administration

(Session :2013-2015)

Co-Guidance of:- Submitted By:-

MISS SONAM GARG JASVEER SINGH

website: www.selset.ac.in

SIROLLY, KICHHA, DISTT. (U.S.N) UTTARAKHAND-263148

S.L.S.E.T.G.I KICHHA | A SUMMER TRAINING REPORT ON CST 1


CERTIFICATE

This is to certify that Mr. JASVEER SINGH, M.B.A student of S.L.S.E.T KICHHA DISTT.(U.S.N) UK. bearing roll no 130600500013 has successfully undergone his summer trainingprogramme in Century Pulp And Paper Ltd. and completed a project on “Legal compliance ofCentral Sales Tax in reference of Century Pulp and Paper Ltd.” under the guidance of Mr. VikrantMangla (Manager) , Assistant Manager, Sales tax Department and Vinod Sharma (F.O.H), Mr.Kailash Gupta (D.G.M) in Finance Department, Century Pulp And Paper Ltd.

Mr. VIKRANT MANGALAManager- HRDCentury Pulp And Paper LtdLalkua Distt, Nanital , UK


PREFACE

The entire assigned project is about the Central Sales Tax in which I worked on various formswhich are used in the company for the sales tax benefit. The whole project was based on theassessment of the year 2010-2011to help the company in filing the sales return, to save the taxwhich company pays. This sales return was done to save an amount of Rs. 5.83 Cr. This projecttaken up by me is a part of academic assignment to find out the total amount of different Formswhich I was assigned to work on (FORM 11, FORM 16, FORM C, FORM F, FORM G, FORMH, FORM I) to save company’s sales tax.

My entire project helped Mr. Vikrant Mangla (Assistant Manager, Sales Tax) to file a sales returnfor the company. I worked there as a management trainee but gained a lot of experience in thefield of sales tax. My work to assess the amount of all the different Forms assigned to me, helpedthe company in filing the sales return and to save an amount of Rs.5.83 Cr.


ACKNOWLEDMENT

I am in search of words to express my gratitude to Mr. Vikrant Mangla, Manager (Department –Sales Tax), Century Pulp And Paper Limited, Lalkuan, District Nainital,Uttarakhand. Mr. VinodSharma (F.O.H) and Mr. Kailash Gupta (D.G.M.) for assigning me such a project of greatmagnitude, which may be of some value to Century in near future. As a part of my summertraining project in Century, I have got invaluable experience in the field with the guidance of Mr.Kailash Gupta.

During the currency of the project, I have enjoyed the independence of doing the project studywhich has been possible because of empowerment conferred by Mr.Vikrant Mangla on me. Thishas been a wonderful experience to do the project under his guidance, who has helped me, guidedme and encouraged me to complete the project to their satisfaction.

I will fail in my duty if I don’t pay my regards to Mr Amit, Asst. HR Manager, who has appointedme as a Summer Trainee for undertaking the project which will stand in good stead for me in myfuture days to come.

I am extremely thankful to my internal supervisor of the project, Miss Sonam Garg (faculty offinance department, S.L.S.E.T in kichha (U.S.N) UK.), to support and help me throughout theproject.

JASVEER SINGH


CO-GUIDANCE

INTARNALGUIDE

EXTARNALGUIDE

Miss. SONAMGRAG

MR.VIKRANT

MANGALA

FACULTY OFCOLLEGEDEP’T.ASSIT. PROF.

MANAGER-

HRD

Century Pulp And

Paper Ltd

Lalkua Distt,

Nanital , UK


OBJECTIVE OF THE PROJECT

MAIN OBJECTIVES:

To assess the amount of the forms (Form H, Form I) for the year 2010-2011.

To help the management in filing the sales return for the financial year 2010-2011.

METHODOLOGY OF THE PROJECT

The methodology adopted for drawing this project is based on the field work and the deskresearch.

The field training that I have received from one of the sales tax office has provided me the basicinsight of sales and its taxation policy system including some hands-on exposure of the realworking of the finance department of a company. While undergoing the field training, it has beennoted how much efforts it take to first segregate the forms in their series then to put in the rightformat. Each and every single form is precious for the company. Because these forms act as aproof for the company to file sales return. If any of the form gets lost the company has to issue abond of Rs. 1 lac. for one form.

TOOLS USED FOR ANALYSIS FOR MEASURING THE AMOUNTCOVERED BY VARIOUS FORMS:

Graphical Representation of Analysis:

Pie charts

Bar Diagrams


DATA COLLECTION APPROACH:

Secondary data has been used to carry out the research successfully. The secondary data has beencollected from the system of the company itself.

METHOD OF COMMUNICATION:

In order to minimize the bias in data collection, the method of personal rectification by Mr.Vikrant Mangla has been done successfully.

THE SOURCES OF THE DATA ARE AS FOLLOWS

The study relies to a great extent on secondary data:

SECONDARY DATA:

Information is collected through system of the company. From various text books Journals and magazines


TABLE OF CONTENT

CONTENTS PAGE NO.

Executive Summary 09

Overview of Central sales tax 1956 10

The Central Sales Tax (Registration and Turnover)Rules, 1957 32

Introduction to Century Textiles AndIndustries Limited 44

Objective of Study 48

Methodology of the Study 48

Findings and analysis 51

Amount Covered By Form F 54Amount Covered By Form H 55

Amount Covered By Form I 59

Findings& Suggestive Analysis of the Study 61

Conclusion 62

Bibliography 63


EXECUTIVE SUMMARY

This study report is attempted to make an assessment of the ‘sales’ and ‘sales return’ for theFinancial Year 2010-11. The overall Central Sales Tax has been considered important as thesubject project is assigned to make a complete assessment of the sales return of year 2010-11.

The methodology adopted for drawing this project is based on desk research. The basic objectiveof my study is to check whether the various forms which come under the sales tax act showed thecorrect scenario of the company’s sales tax benefit or not. To know this I worked on Form 11,Form 16, Form C, Form F, Form G, Form H, and Form I. Auditing of all these forms had beendone by me and simultaneously I experienced the core working of a finance department of acompany.

Further it is explained about the various forms which I was assigned to work on assignment.


OVERVIEWOF

CENTRAL SALES TAX1956


OVERVIEW OF CENTRAL SALES TAX 1956

An Act to formulate principles for determining when a sale or purchase of goods takes place inthe course of inter-state trade of commerce or outside a State or in the course of imports into orexport from India, to provide for the levy, collection and distribution of taxes on sales of goodsin the course of inter-state trade of commerce and to declare certain goods to be of specialimportance in inter-state or commerce and specify the restrictions and conditions to whichstate laws imposing taxes on the sale or purchase of such goods of special importance shall besubject .

DEFINITIONS

In this Act, unless the context otherwise requires“Appropriate State” means

(i) In relation to a dealer who has one or more places of business situate in the same state, thatstate;

(ii) In relation to a dealer who has places of business situate in different states, every such statewith respect to the place or places of business situate within its territory.

Explanation “business” includes-

(i) Any trade, commerce or manufacture, or any adventure or concern in the nature of trade,Commerce or manufacture, whether or not such trade, commerce, manufacture, adventure orconcern is carried on with a motive to make gain or profit and whether or not any gain or profitaccrues from such trade, commerce, manufacture, adventure or Concern; and

(ii) Any transaction in connection with, or incidental or ancillary to, such trade, commerce,manufacture, adventure or concern;]

[ab] “Crossing the customs frontiers of India” means crossing the limits of the area of acustoms station in which imported goods or export goods are ordinarily kept before clearanceby customs authorities.

Explanation: For the purposes of this clause, “customs station” and “customs authorities”, shallhave the same meanings as in the Customs Act, 1962 (52 of 1962);]

[[b] “Dealer” means any person who, carries on (whether regularly or otherwise] the businessof buying, selling, supplying or distributing goods, directly or indirectly, for cash, or fordeferred payment, or for commission, remuneration or other valuable consideration, andincludes –


(i) A local authority, a body corporate, a company, any co-operative society or other society,club, firm, Hindu undivided family or other association of persons which carries on suchbusiness;

(ii) A factor, broker, commission agent, delredere agent, or any other mercantile agent, bywhatever name called, and whether of the same description as herein before mentioned or not,who carries on the business of buying, selling, supplying or distributing goods belonging toany principal whether disclosed or not; and

(iii) An auctioneer who carries on the business of selling or auctioning goods belonging to anyprincipal, whether disclosed or not and whether the offer of the intending purchaser is acceptedby him or by the principal or a nominee of the principal.

Explanation1 : Every person who acts as an agent, in any State, of a dealer residing outside thatState and buys, sells, supplies, or distributes, goods in the State or acts on behalf of such dealeras –

(i) A mercantile agent as defined in the State of GoodsAct,1930 (3 of 1930) , or

(ii) An agent for handling of goods or documents of title relating to goods, or

(iii) An agent for the collection or the payment of the sale price of goods or as a guarantor forsuch collection or payment, and every local branch or office in a State of a firm registeredoutside that State or a company or other body corporate, the principal office or headquarterswhereof is outside that State, shall be deemed to be a dealer for the purposes of this Act.

Explanation 2 : A Government which, whether or not in the course of business, buys, sells,supplies or distributes, goods directly or otherwise, for cash or for deferred payment or forcommission, remunerations or other valuable consideration, shall, except in relation to anysale, supply or distribution of surplus, unserviceable or old stores or materials or wasteproducts or obsolete or discarded machinery or parts or accessories.Thereof, be deemed to be a dealer for the purposes of this Act.]

(c) “Declared goods” means goods declared under Section 14 to be of special importance ininter-state trade or commerce;

(d) “Goods” includes all materials, articles, commodities and all other kinds of movableproperty, but does not include actionable claims, stocks, shares and securities;

[dd] “Place of business “ includes –

(i) In any case where a dealer carries on business through an agent by [whatever namecalled], the place of business of such agent;


(ii) A warehouse, godown or other place where a dealer stores his goods ‘ and

(iii) A place where a dealer keeps his books of account;]

(e) “Prescribed” means prescribed by rules made under this Act;

(f) “Registered dealer” means a dealer who is registered under Section

(g) “Sale”, with its grammatical variations and cognates expressions, means any transfer ofproperty in goods by one person to another for cash or deferred payment or for any othervaluable consideration, and includes,

(i) A transfer, otherwise than in pursuance of a contract, of property in any goods for cash,deferred payment or other valuable consideration;

(ii) A transfer of property in goods (whether as goods or in some other form) involved in theexecution of a works contract;

(iii) A delivery of goods on hire-purchase or any system of payment by instalments;

(iv) A transfer of the right to use any goods for any purpose (whether or not for a specifiedperiod) for cash, deferred payment or other valuable consideration;

(v) A supply of goods by any unincorporated association or body of persons to a memberthereof for cash deferred payment or other valuable consideration

(vi) A supply, by way of or as part of any service or in any other manner whatsoever, ofgoods, being food or any other article for human consumption or any drink (whether or notintoxicating),where such supply or service, is for cash, deferred payment or other valuableconsideration, but does not include a mortgage or hypothecation of or a charge or pledge ongoods.

(h) “Sale price” means the amount payable to a dealer as consideration for the Sale of anygoods, less any sum allowed as cash discount according to the practice normally prevailing inthe 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 there of other than the cost of freight or delivery orthe cost of installation in cases where such cost is separately charged;

(I) .“Sales tax law” means any law for the time being in force in any State or part thereof whichprovides for the levy of taxes on the sale or purchase of goods generally or on any specifiedgoods expressly mentioned in that behalf, and “general sales tax law” means the

law for the time being in force in any State or part thereof which provides for the levy of tax onthe sale or purchase of goods generally;


(j) “Turnover” used in relation to any dealer liable to tax under this Act means the aggregate ofthe sale prices received and receivable by him in respect of sales of any goods in the course ofinter-State trade or commerce made during any prescribed period [and determined inaccordance with the provisions of the Act and rules made there under]].

(k) “Year”, in relation to a dealer, means the year applicable in relation to him under thegeneral sales tax law of the appropriate State, and where there is no such year applicable, thefinancial year.

CHAPER II

FORMULATION OF PRINCIPLES FOR DETERMINING WHEN SALEOR PUCHASE OF GOODS TAKES PLACE IN THE COURSE OFINTER-STATE TRADE OR COMMERCE OR OUTSIDE ASTATE OR INTHE COURSE OF IMPORT OR EXPORT

3. When is a sale or purchase of goods said to take place in the course of inter- State trade orcommerce

A Sale or purchase of goods shall be deemed to take place in the course of inter-state trade ofcommerce if the sale or purchase-

(a) Occasions the movement of goods from one State to another or

(b) Is effected by a transfer of documents of title to the goods during their movement from oneState to another.

Explanation 1 :Where goods are delivered to a carrier or other bailey for transmission, themovement of the goods shall, for the purposes of clause .

(b), be deemed to commence at the time of such delivery and terminate at the time whendelivery is taken from such carrier or bailey.

Explanation 2: Where the movement of goods commences and terminates in the same State itshall not be deemed to be a movement of goods from one State to another by reason merely ofthe fact that in the course of such movement the goods pass through the territory of any otherState.

4. When is a sale or purchase of goods said to take place outside aState


(1) Subject to the provisions contained in section 3, when a sale or purchase of goods isdetermined in accordance with sub-section (2) to take place inside a state such sale or purchaseshall be deemed to have taken place outside all other states.

(2) A sale or purchase of goods shall be deemed to take place inside a state if the goods arewithin the State …

(a) In the case of specific or ascertained goods at the time the contract of sale is need and

(b) In the case of unascertained or future goods at the time of where appropriation to thecontract of sale by the seller or by the buyer whether assent of the other party is prior orsubsequent to such appropriation.

Explanation : Where there is a single contract of sale or purchase of goods situated at moreplaces than one, the provisions of this subsection shall apply as if there were separate contractsin respect of the goods at each of such places.

5. When is a sale or purchase of goods said to take place in the course of import or export.

(1) A sale or purchase of goods shall be deemed to take place in the course of the export of thegoods out of the territory of India only if the sale or purchase either occasions such export or iseffected by a transfer of documents of title to the goods after the goods have crossed thecustoms frontiers of India.

(2) A sale or purchase of good shall be deemed to take place in the course of the import of thegoods into the territory of India only if the sale or purchase either occasions such import or iseffected by a transfer of documents of title to the goods before the goods have crossed thecustoms frontiers of India.

(3) Not withstanding anything contained in sub-section (1), the last sale or purchase of anygoods preceding the sale or purchase occasioning the export of those goods out of the territoryof India shall also be deemed to be in the course of such export, if such last sale or purchasetook place after, and was for the purpose of complying with, the agreement or order for or inrelation to such export.

CHAPTER IIIINTER-STATE SALES TAX

6. Liability to tax on inter-State sales

(1) Subject to other provisions contained in this Act, every dealer shall, with effect from suchas the Central government may, by notification in the Official Gazette, appoint, not beingearlier than thirty days from the date of such notification, be liable to pay tax under this act onall sales of goods other than electrical energy] effected by him in the course of inter-state tradeor commerce during any year on and from the date so notified


Provided that a dealer shall not be liable to pay tax under this Act on any sale of goods which,in accordance with the provisions of sub-section 3 of section 5 is a sale in the course of exportof those goods out of the territory of India.

[1 A] A dealer shall be liable to pay tax under this Act on a sale of any goods effected by himin the course of inter-state trade or commerce not withstanding that no tax would have beenliveable (whether on the seller or the purchaser) under the sales tax law of the appropriate Stateif that sale had taken place inside the State.]

[2] Not withstanding anything contained in sub-section(1)or sub-section (1A), where a sale ofany goods in the course of inter-State trade or commerce has either occasioned the movementof such goods from one State to another or has been effected by a transfer of documents of titleto such goods during their movement from one State to another, anysubsequent sale during such movement effected by a transfer of documents of title to suchgoods-

(A) To the Government, or

(B) To a registered dealer other than the government , if the goods are of the descriptionreferred to in sub-section (3) of Section 8, shall be exempt from tax under this Act;

Provided that no such subsequent sale shall be exempt from tax under the sub-section unlessthe dealer effecting the sale furnishes to the prescribed authority in the prescribed manner andwithin the prescribed time or within such further time as that authority may, for sufficientcause, permit,-

(a) A certificate duly filled and signed by the registered dealer from whom the goods werepurchased containing the prescribed particulars in a prescribed form obtained from theprescribed authority; and

(b) If the subsequent sale is made

(i) To a registered dealer, a declaration referred to in clause (a) of subsection(4)of section 8, or

(ii) To the Government, not being a registered dealer, a certificate referred toin clause (b) ofsub-section(4) of Section8 ;

Provided Further that it shall not be necessary to furnish the declaration or the certificatereferred to in clause (b) of the preceding proviso in respect of a subsequent sale of goods ,if, -

(a) The sale or purchase of such goods is, under the sales tax law of the appropriate State,exempt from tax generally or is subject to tax generally at a rate which is lower than fourpercent. (Whether called a tax or fee or by any other name);and


(b) The dealer effecting such subsequent sale proves to the satisfaction of the authority referredto in the preceding proviso that such sale is of the nature referred to in clause (a)or clause (b) ofthis sub-section.

(3) Not withstanding anything contained in this Act, if –

Any official or personnel of -

(i) Any foreign diplomatic mission or consulate in India ; or

(ii) The United nations or any other similar international body, entitled to privileges under anyconvention to which India is a party or under any law for the time being in force ; or

(b) Any consular or diplomatic agent of any mission, the United Nations or other body referredto in sub –clause (i) or sub clause(ii) of clause (a).

Purchases any goods for himself or for the purposes of such mission, United nations or otherbody, then, the Central Government may, be notification in the Official Gazette, exempt,subject to such conditions as may be specified in the notification, the tax payable on the sale ofsuch goods under this Act.]

6A. Burden of proof, etc., in case of transfer of goods claimed otherwise than by way of sale

(1) Where any dealer claims that he is not liable to pay tax under this Act, in respect of anygoods, on the ground that the movement of such goods from one State to another wasoccasioned by reason of transfer of such goods by him to any other place of his business or tohis agent or principal, as the case may be, and not by reason of sale, the burden of proving thatthe movement of those goods was so occasioned shall be on that dealer and for this purpose hemay furnish to the assessing authority, within the prescribed time or within such further timeas that authority may, for sufficient cause, permit, a declaration, duly filled and signed by theprincipal officer of the other place of business, or his agent or principal, as the case may be,containing the prescribed particulars in the prescribed form obtained from.

The prescribed authority, along with the evidence of despatch of such goods and if the dealerfails to furnish such declaration, then, the movement of such goods shall be deemed for allpurposes of this Act to have been occasioned as a result of sale.]

(2) If the assessing authority is satisfied after making such inquiry as he may deem necessarythat the particulars contained in the declaration furnished by a dealer under sub-section(1) aretrue, he may, at the time of, or at any time before, the assessment of the tax payable by thedealer under this Act, make an order to that effect and thereupon the movement of goods towhich the declaration relates shall be deemed for the purpose of this Act to have beenoccasioned otherwise than as a result of sale.


Explanation: In this section “assessing authority”, in relation to a dealer, means the authorityfor the time being competent to assess the tax payable by the dealer under this Act.]

7. REGISTRATION OF DEALERS

(1) Every dealer liable to pay tax under this Act shall, with in such time as may be prescribedfor the purpose, make an application for registration under this Act to such authority in theappropriate State as the Central Government may, by general or special order, specify, andevery such application shall contain such particulars as may be prescribed.

(2) Any dealer liable to pay tax under the sales tax law of the appropriate State, or where thereis no such law in force in the appropriate State or any part thereof, any dealer having a place ofbusiness in that State or part, as the case may be, may, notwithstanding that he is not liable topay tax under this Act, apply for registration under this Act to the authority referred to in sub-section(1), and every such application shall contain such particulars as may be prescribed.

Explanation:- For the purposes of this sub-section, a dealer shall be deemed to be liable to paytax under the sales tax law of the appropriate State notwithstanding that under such law a saleor purchase made by him is exempt from tax or refund or rebate of tax is admissible in respectthereof.

[2A] Where it appears necessary to the authority to whom an application is made under sub-section (1) or sub-section(2) so to do for the proper realization of the tax payable under this Actor for the proper custody and use of the forms referred to in clause (a) of the first proviso tosub-section(2) of Section 6or sub-section (1) of Section 6A or clause (a) of subsection(4)ofSection 8, he may, by an order in writing and for reasons to be recorded therein, impose as acondition for the issue of the Certificate of Registration a requirement that the dealer shallfurnish in the prescribed manner and within such time as may be specified in the order suchsecurity as may be so specified, for all or any of the aforesaid purposes; .

(3) if the authority to whom an application under sub-section (1)or sub-section(2) is made issatisfied that the application is inconformity with the provisions of this Act and the rules madethere under and the condition, if any, imposed under subsection(2A), has been complied with,he shall register the applicant and grant to him a Certificate of registration in the prescribedform which shall specify the class or classes of goods for the purposes of sub-section(1) ofsection 8.

[[3A] Where it appears necessary to the authority granting a Certificate of registration underthis section so to do for the proper realization of tax payable under this Act or for the propercustody and use of the forms referred to in sub-section(2A), he may, at any time while suchcertificate is in force, by an order in writing and for reasons to be recorded there in, require thedealer, to whom the certificate has been granted, to furnish within such time as may bespecified in the order and in the prescribed manner such security, or, if the dealer has already


furnished any security in pursuance of an order under this sub-section (2A) , such additionalsecurity, as may be specified in the order, for all or any of the aforesaid purposes].

[3 B] No dealer shall be required to furnish any security under Sub-section(2A) or any securityor additional security under sub-section(3A) unless he has been given an opportunity of beingheard.]

[3BB] The amount of security which a dealer may be required to furnish under sub-section(2A) or sub-section (3A)or the aggregate of the amount of such security and the amount ofadditional security which he may be required to furnish under sub-section (3A), by theauthority referred to there in, shall not exceed-

In the case of a dealer other than a dealer who has made an application, or who has beenregistered in pursuance of an application, under sub-section(2), a sum equal to the tax payableunder this Act, in accordance with the estimate of such authority, on the turnover of suchdealer for the year in which such security or, as the case may be, additional security is requiredto be furnished; and

(b) In the case of a dealer who has made an application, or who has been registered inpursuance of an application, under sub-section(2), a sum equal to the tax liveable under thisAct, in accordance with the estimate of such authority on the sales to such dealer in the courseof inter-State trade of commerce in the year in which such security or, as the case maybeadditional security is required to be furnished, had such dealer been not registered under thisAct.]

[3C] Where the security furnished by a dealer under sub-section (2A) or sub-section (3A) is inthe form of a surety bond and the surety becomes insolvent or dies, the dealer shall, withinthirty days of the occurrence of any of the aforesaid events, inform the authority granting the

certificate of registration and shall within ninety days of such occurrence furnish a fresh suretybond or furnish in the prescribed manner other security for the amount of the bond.

[3 D]The authority granting the certificate of registration may by order and for good andsufficient cause forfeit the whole or any part of the security furnished by a dealer,-

(a) for realizing any amount of tax or penalty payable by the dealer;

(b) if the dealer is found to have misused any of the form referred to in sub-section (2A) or tohave failed to keep them in proper custody. PROVIDED that no order shall be passed underthis sub-section without giving the dealer an opportunity of being heard.

[3E]Where by reason of an order under sub-section [3D], the security furnished by any dealeris rendered insufficient, he shall make up the deficiency in such manner and within such timeas may be prescribed.


[3F] The authority issuing the forms referred to in sub-section(2A)may refuse to issue suchforms to a dealer who has failed to comply with an order under that sub-section or sub-section(3A), or with the provisions of sub-section (3C) or sub-section(3E), until the dealer hascomplied with such order or such provisions, as the case may be.

[3 G]The authority granting a Certificate of registration may, on application by the dealer towhom it has been granted, order the refund of any amount or part thereof deposited by thedealer by way of security under this section, if it is not required for the purposes of this Act.

[3H]Any person aggrieved by an order passed under sub-section [2A], sub-section [3A], sub-section [3D] or sub-section [3G]may, within thirty days of the service of the order on him, butafter furnishing the security, prefer, in such form and manner as may be prescribed, an appealagainst such order to such authority (hereafter in this section referred to as the “appellateauthority”) as may be prescribed: Provided that the appellate authority may, for sufficientcause, permit such person to present the appeal,-

(a) After the expiry of the said period of thirty days; or

(b) Without furnishing the whole or any part of such security

[3 I]The procedure to be followed in hearing any appeal under sub-section (3H), and the feespayable in respect of such appeals shall be such as may be prescribed.

[3J]The order passed by the appellate authority in any appeal under sub-section(3H) shall befinal.]

[[4] A certificate of registration granted under this section may –

(a) Either on the application of the dealer to whom it has been granted or, where no suchapplication has been made, after due notice to the dealer, be amended by the authority grantingit if he is satisfied that by reason of the registered dealer having changed the name, place ornature of his business or the class or classes of goods in which he carries on business or for anyother reason the certificate of registration granted to him requires to be amended ; or

(b) Be cancelled by the authority granting it where he is satisfied, after due notice to the dealerto whom it has been granted, that the has ceased to carry on business or has ceased to exist orhas failed without sufficient cause, to comply with an order under subsection[3A] or with theprovisions of sub-section[3C]or sub-section[3E]or has failed to pay any tax or penalty payableunder this Act], or in the case of a dealer registered under sub-section(2) has ceased to be liableto pay tax under the sales tax law of the appropriate State or for any other sufficient reason.

[5] A registered dealer may apply in the prescribed manner not later than six months before theend of a year to the authority which granted his certificate of registration for the cancellation ofsuch registration, and the authority shall, unless the dealer is liable to pay tax under this Act,cancel the registration accordingly, and where he does so, the cancellation shall take effectfrom the end of the year.


8. Rates of tax on Sales in the course of inter-state trade or

(a) The amount arrived at by applying the following formula –

rate of tax X aggregate of sale prices______________________________100 + rate of tax

Provided that no deduction on the basis of the above formula shall be made if the amount byway of tax collected by a registered dealer, in accordance with the provisions of this Act, hasbeen otherwise deducted from the aggregate of sales prices.

Explanation: where the turnover of a dealer is taxable is taxable at different rates, the aforesaidformula shall be applied separately in respect of each part of a turnover liable to a differentrates of rates;

(b) The sale price of all goods returned to the dealer by the purchases of such goods-

(i) Within a period of three months from the date delivery of the goods, in the case of goodsreturned before the 14 day of May, 1966.

(ii) Within a period of six months from the date of delivery of the goods, in the case of goodsreturned on or after the 14 day of May,1966.

Provided that satisfactory evidence of such return of goods and of refund or adjustment inaccounts of the sale price thereof is produced before the authority competent to assess or as thecase may be, reassess the tax payable by the dealer under this Act; and

(c) Such other deducting as the Central Government may, having regard to the prevalentmarket conditions, facility of trade and interests of consumers, prescribe.

(2) Save as otherwise provided in sub-section(1), in determining the turnover of a dealer for thepurposes of this Act, no deduction shall be made from the aggregate of the sale prices.


THE CENTRAL SALES TAX(REGISTRATION

ANDTURNOVER)RULES, 1957


THE CENTRAL SALES TAX (REGISTRATION AND TURNOVER)RULES, 1957

1S.R.O. 644, Dated 28th February, 1957.–In exercise of the powers conferred by sub-section(1) of Section 13 of the Central Sales-tax Act, 1956 (74 of 1956), the CentralGovernment here by makes the following rules, namely:

1 These rules may be called the Central Sales Tax (Registration and Turnover) Rules,1957.

2. DEFINATION – In these rules, unless the context otherwise requires,–

(a) “Act” means the Central Sales Tax Act, 1956;23

(aa)“Authorized officer” means an officer authorized by the Central Government underclause (b) of sub-section (4) of Section 8.

(aaa)“Company” means a company as defined in Section 3 of the Companies Act, 1956 (1of 1956), and includes a foreign company within the meaning of Section 591 of thatAct.

(b) “Form” means a form appended to these rules;

“Notified authority” means the authority specified under 4 sub-section (1) of Section 7.

(cc) “Prescribed authority” means the authority empowered by the Central Government under5 [sub-section (2) of Section 9], or the authority prescribed by a State Government underclause (e) of sub-section (4) of section 13, as the case may be];“Section” means a section of the Act; 6.

(e) “Warehouse” means any enclosure, building or vessel in which a dealer keeps a stock ofgoods for sale.

[1. Vide S.R.O 644, dated 28th February, 1957, published in the Gazette of India,Extraordinary, 1957, Pt. II, Section 3. p. 1039.][2. Inserted by S.R.O.896, dated 23-9-1958 (w.e.f. 1.10.1958).][3. Inserted by G.S.R. 26(E), dated 1-2-1974.][4. Inserted by G.S.R. 896, dated 23-9-1958.][5. These words were substituted for the words “sub-section (3) of section 9” by G.S.R 56(E),dated 9-2-1973][6. Rule 2(dd) was deleted by G.S.R. 56(E), dated 9-2-1973.]


3. Certificate of Registration

(1) An application for registration under section 7 shall be made by a dealer to thenotified authority in Form A and shall be.

(a) signed by the proprietor of the business, or, in the case of a firm, by one of its partners, or,in the case of Hindu undivided family, by the karta or manager of the family, or, in the caseof a company 6A by a director, managing agent or principal officer there of, or, in the caseof a Government, by an officer duly authorized by that Government, or, in the case of anyother association of individuals, by the principal officer managing the business; and

(b) Verified in the manner provided in the said Form.

(2) Where a dealer has more than one place of business with in a State, he shall make a singleapplication in respect of all such places, name in such application one of such places as theprincipal place of business for the purposes of these rules and submit such application to thenotified authority specified in respect of the principal place of business so named:

Provided that any place so named shall not in any case be different from the place, if any,declared by him to be the principal place of business, by whatever name called, under thegeneral Sales Tax law of the State.[6A. The words “incorporated under the CompaniesAct’1956” were omitted by G.S.R.26(E), Dt.1/2/1974].

4. (1) An application for registration under sub-section (1) of Section 7 shall be made notlater than thirty days from the date on which the dealer becomes liable to pay tax under the Act(2) An application for registration under sub-section (2) of Section 7 may be made at anytime after the commencement of the Act 7(3) A fee of 8[rupees twenty-five] shall be payablein respect of every application for registration under sub-rule (1) or sub-rule (2);and such feemay be paid in the form of court-fee stamps affixed to such application. [7 &7A.Ins.byS.R.O.896, dated 237A September, 1958 (w.e.f 1.10.1958). By Notification G.S.R.No.401,Dt.9.3.1967, in the application of these rules to Union Territory of Goa, Daman and Diuand the words “local revenue stamps” were substituted “Court Fee Stamps”. Again byNotification 1585, Dt.26.10.1964, w.e.f1.11.1964, theses words were substituted for “localrevenue stamps”. Similarly in its application to Pondichery, by notification G.S.R.No.956,Dt.1.6.1963, “local revenue stamps” were substituted for “Court Fee Stamps”][8.Subs.byG.S.R.395, dated 14th April, 1987 (w.e.f 14.4.1987)].

5.(1) When the notified authority is satisfied, after making such enquiry as it thinks necessary,that the particulars contained in the application are correct and complete [and the fee referredto in sub rule (3) of rule 4 has been paid], it shall register the dealer and grant him a certificateof registration in Form B and also a copy of such certificate for every place of business withinthe State other than the principal place of business mentioned there in.


(2) When the said authority is not satisfied that the particulars contained in the applicationare correct and complete, or where the fee referred to in sub-rule (3) of rule 4 has not beenpaid, he shall reject the application for reasons to be recorded in writing:Provided that before the application is rejected the applicant shall be given an opportunityof being heard in the matter and, as the case may be, of correcting and

completing the said particulars for complying with the requirements of sub-rule (3) of rule4.][9.Ins.by S.R.O.896, dated 23rd September, 1958 (w.e.f 1.10.1958)][10. Ins.by S.R.O.896,dated 23rd September, 1958 (w.e.f 1.10.1958)].

6. The certificate of registration granted under sub-rule (1) of rule 5 shall be kept at theprincipal place of business mentioned in such certificate and a copy of such certificate grantedunder the said sub rule shall be kept at every place of business within the State other than theprincipal place of business, mentioned in such certificate.

7. (1) Where a dealer desires the certificate of registration granted to him under these rulesto be amended, he shall submit an application for this purpose to the notified authority settingout the specific matters in respect of which he desires such amendment and the reasons therefor, together with the certificate of registration and the copies there of, if any, granted to him;and such authority may, if satisfied with the reasons given, make such amendments, as it thinksnecessary in the certificate of registration and the copies there of, if any, granted to him.

(2) The provisions of rule 6 shall apply in relation to such amended certificate and copiesthere of, as they apply in relation to the original certificate and copies there of.

8. (1) Where the certificate of registration granted to a dealer is lost destroyed, defaced ormutilated, he may on application made in this be half to the notified authority and on paymentof a fee of a 12[rupees five] obtained a duplicate copy of such certificate.

(2) The fee payable under sub-rule (1) shall be paid in the form of 13 [court-feestamps].[11.Subs.by S.R.O.3613, dated 16th November, 1957][12.Subs.by G.S.R 395(E), dated14thApril, 1987, for the words “two rupees”][13.Ins.by S.R.O.896, dated 23rdSeptember, 1957(w.e.f 1.10.1958)]

9. Amendment or cancellation of certificate of registration.—

(1) A notified authority shall, before amending or cancelling, as the case may be, the certificateof registration of a dealer under sub section (4) of Section 7 give him an opportunity of beingheard in the matter.

(2) If the certificate of registration is proposed to be amended, the dealer shall forth withproduce to the notified authority the certificate of registration and the copies there of, ifany, granted to him, for having them amended.


(3) If the certificate of registration is cancelled, the dealer shall forth with surrender tothe notified authority the certificate of registration and the copies there of, if any, granted tohim.][14.Ins.by S.R.O.896, dated 23rd September, 1958 (w.e.f 1.10.1958)]

10. If any dealer desires to apply under sub-section (5) of Section 7 for cancellation of hisregistrations, he shall submit within the time specified in that sub-section to the notifiedauthority an application in that behalf together with the certificate of registration andcopies there of, if any, granted to him; and such application shall be dealt within accordancewith the provisions of that subsection.

11. Determination of Turnover

(1) The period of turnover in relation to any dealer liable to pay tax under this Act shall be thesame as the period in respect of which he is liable to submit returns under the general sales taxlaw of the appropriate State:

Provided that in relation to a dealer who is not liable to sub mitre turns under the general salestax law of the appropriate State, the period of turnover shall be a quarter ending on 30thJune, 30th September, 31st December and 31st March, as the case may be, in a financialyear.14A15[14A. Rule 11 was renumbered as sub rule (1) of that rule and sub rule (2) wasinserted by G.S.R.3313, Dt.6.11.1957. Sub rule (2) was omitted by G.S.R.1362, Dt.9.6.1969.]

12. (1) The declaration and the certificate referred to in sub-section (4) of Section 8 shall be inForms C and D respectively; 16

Provided that Form C in force before the commencement of the Central Sales Tax Registrationand Turnover (Amendment) Rules,1974, or before the commencement of the CentralSales Tax Registration and Turnover (Amendment) Rules, 1976, may also be used up to the31st December, 17[31st December, 1979], with suitable modifications:]

Provided further that a single declaration may cover all transactions of sale which takeplace in a quarter of a Financial Year between the same two dealers.]

20[Provided also that where, in the case of any transaction of sale, the delivery of goods isspread over to different quarters in a financial years, it shall be necessary to furnish a separatedeclaration or certificate in respect of goods so delivered in each quarter of a financialyear]]

21[(2) Where a blank or duly completed from of declaration is lost, whether such loss occurswhile it is in the custody of the purchasing dealer or in transit to the selling dealer, thepurchasing dealer shall furnish in respect of every such form so lost an in demnity bond


22[in Form G] to the notified authority from whom the said form was obtained, for such sum asthe said authority may having regard to the circumstances of the case, fix. Such indemnitybond shall be furnished by the selling dealer to the notified authority of his

State if aduly completed from of declaration received by him is lost, whether such loss occurswhile it is in his custody or while it is in transit to the notified authority of his State:

23[Provided that where more than one form of declaration is lost, the purchasing dealer or theselling dealer, as the case may be, may furnish one such indemnity bond to cover all the formsof declarations so lost.]

24(3) Where a declaration form furnished by the dealer purchasing the goods or thecertificate furnished by the Government has been lost, the dealer selling the goods maydemand from the dealer who purchased the goods or, as the case may be from theGovernment which purchased the goods, duplicate of such form or certificate and the sameshall be furnished with the following declaration recorded in red ink and signed by thedealer or authorized officer of the Government, as the case may be, on all the threeportions of such form or certificate,—

CERTIFICATE

“I here by declare that this is the duplicate of the declaration form/ certificate No..............signed on........................ and issued to........................who is a registered dealerof................................State and whose registration certificate No. is.................................................”

25[(4)] The certificate referred to in sub-section (2) of Section 6 shall be in Form E-I or Form E-II, as the case may be.

26[(5) The declaration referred to in sub-section (1) of Section 6A shall be in Form F]

27[Provided that a single declaration may cover transfer of goods, by a dealer, to any otherplace of his business or to his agent or principal, as the case may be, effected during a period ofone calendar month:

28Provided further that if the space provided in Form F is not sufficient for making entries, theparticulars specified in Form F may be given in separate annexure attached to that form so long


as it is indicated in the form that the annexure form part there of and every such annexure is,also signed by the person signing the declaration in Form F:

29Provided also that form in force before the commencement of the Central Sales Tax(Registration and Turnover) (Second Amendment) Rules, 1973, may continue to be used upto 31st day.

30[December, 1980] with suitable modifications.]

31[(6) Form C referred to in sub-rule (1) or as the case may be, Form F referred to in sub-rule (5)shall be the one obtained by the purchasing dealer or, as the case may be, the transferee in theState in which the goods covered by such form are delivered.,

32[Explanation.—Where, by reason of the purchasing dealer not being registered under Section7 in the State in which the goods covered by Form C referred to in sub-rule (1) aredelivered, he is not able to obtain the said form in that State, Form ‘C’ may be the oneobtained by him in the State in which he is registered under the said section.]

33[(7) The declaration in Form C or Form F or the certificate in Form E-I or Form E-II shall befurnished to the prescribed authority with in three months after the end of the period towhich the declaration or the certificate relates :Provided that if the prescribed authority issatisfied that the person concerned was prevented by sufficient cause from furnishing suchdeclaration or certificate with in the aforesaid time, that authority may allow such declarationor certificate to be furnished within such further time as that authority may permit.]

34[(8) (a) The person referred to in clause (a) sub-rule (1) of rule 3 shall alone be competent tosign the declaration in Form C or Form For the certificate in Form E-I or Form E-II:

35[Provided that where such person is a proprietor of any business or a partner of a firmor karta or manager of a Hindu undivided family, any other person authorized by him inwriting may also sign such declaration or certificate:]

36[Provided further that in the case of a company [such declaration or certificate] can alsobe signed by any other officer of the company or under any other special or generalresolution of the company or under a resolution passed by the Board of Directors of theCompany to authenticate any document on behalf of such company].


38(b) such person shall signify on such declaration or certificate his status and shall make averification in the manner provided in such declaration or certificate.

39[(9) (a)] The provisions of 40[***] sub-rule (2) and sub-rule(3) shall with necessarymodifications, apply to the declaration in Form F or the certificate in Form E-I or Form E-II.]37

41[(b) The provisions of the second and third proviso to sub-rule(1) shall, with necessarymodifications, apply to certificate in Form E-I or Form E-II.]

42[(10) Prescription of goods for certain purposes

43(a) The declaration referred to in sub section (4) of section 5shall be in Form H and shall befurnished to the prescribed authority up to the time of assessment by the first assessingauthority.

44[****](b) The provisions of the rules framed by the respective State Governments under sub-section (3), (4) and (5) of section 13 relating to the authority from whom and the conditionssubject to which any form of certificate in Form “H” may be obtained, the manner in whichsuch form shall be kept in custody and records relating theretomaintained and the manner in which any such form may be used and any such certificate maybe furnished in so far they apply to declaration in Form C prescribed under these rulesshall mutatismut and is apply to certificate in Form H.]

45[(11)The dealer, selling goods in the course of inter-State trade or commerce to a registereddealer under sub-section (6) or under sub-section (8) of section 8 or under sub-section (1) ofsection 5of the Central Sales Tax Act, 1956 read with section 76A of the Customs Act,1962 (52 of 1962), shall furnish a declaration for the purposes of sub-section (8) of thesaid section 8 in “Form I” duly counter signed and certified by the Authority specified by theCentral Government authorising the establishment of the unit in the Special Economic Zone(notified under section 76A of the Customs Act, 1962(52 of 1962) that the sale of goods is forthe purpose of establishing a unit in such Zone


INTRODUCTIONTO

CENTURY TEXTILESAND

INDUSTRIES LIMITED


INTRODUCTION TO CENTURY TEXTILES AND INDUSTRIESLIMITED

The Indian economy in tandem with that of many countries of the globe entered alower in tandem with that of the Indian economy in tandem phase of growthmirroring the world wide nancial turmoil and slow down witnessed in the recentpast, though mercifully, India escaped many of the worst scenarios. India’s returnto the former trajectory has been interrupted due, among other reasons, to thesovereign debt crisis in the Euro Zone, political turmoil in the middle east , and apolicyre form deadlock at home. Further, the economy has had to battle withnearly double digit in action for almost two years. Monetary and scal policieswere geared towards taming domestic in action which adversely impactedinvestments and consumption growth. However, recently in action has moderatedsomewhat and it is hoped that it will remain under reasonable control. AlthoughRBI has recently taken some steps to reduce the interest rates but the need tofurther reduce the same would be felt by the industry. Further reduction couldmake credit more readily available and cheaper. Agriculture continues to performwell and the Indian manufacturing sector remains robust. The expectations ofgrowth of the Indian economy have to be more modest than in the yearsimmediately before 2008 but much depends on various extraneous factors, suchas the price of crude oil and the adequacy of monsoon. Fiscal prudence at homeand a supportive and stable business environment, aided by legislation as theGoods and Services Tax Act would be of great help in boosting growth. Due todifficult circumstances prevailing particularly in industries in which ourCompany operates, in terms of reduced demand, higher costs of many majorinputs including cost of raw materials, fuel and transport and temporaryshutdown of the pulp and paper mill at Lalkua, the performance of our Companyhas not been satisfactory. As the demand for cement and paper which are twomajor contributors to the revenue of the Company is expected to remain due toGovernments continuous thrust on infrastructure and education, the performanceof our Company in the current year and the near term is expected to react thisinherent strength of the product portfolio. I would like to extend my gratitude toall our stakeholders including shareholders, customers, lenders and our loyal,hardworking and committed employees for their continued support and faith inthe Company.


ABOUTS US

COMPANY PTOFILS

Century Pulp and Paper (CPP) is a producer of excellent quality writing and printing paper, and aleading manufacturer of tissue and board, as well as Rayon Grade Pulp (RGP) products. Adivision of Century Textile and Industries Ltd (CTIL), Century Pulp and Paper has achievedsignificant efficiencies in various disciplines, all within a short time.

Situated at the foothills of the Himalayas in Lalkua (Nainital), Century Pulp and Paper is acommitted employer of the local community. The company is proud to attain these internationalstandards as a leading producer of pulp and paper:

Certifications of CPPISO 9001,ISO 14001 CERTIFIEDOHSAS 18001 CERITIFEDFSC CERTIFIEDFDA APPROVED TISSUE & BOARD


OUR PEOPLE

At Century Pulp and Paper, we believe in promoting a people-oriented organisational culture for amore efficient, motivated and committed workforce. Our business aligned HR practices aredesigned to be employee friendly, while driving a culture of accountability and high performance.We invest continually in building our HR systems, practices and policies, and focus on enhancingfunctional and managerial capability.

As an organization, we value continuous learning and believe in encouraging creativity andindependent thinking to engage, educate and empower our people. At Century, we also strive toensure the highest standards of business ethics and business continuity with favorable employeerelations.

OUR VISION & POLICY

Century's vision for the future is committed towards the manufacturing of quality products thatmeet international standards. This must be achieved by meeting cost objectives without sacrificingthe needs of different stakeholders such as customers and the environment.

VISION ELEMENTS:

Product Quality

Safety and Environment


Satisfaction of Customer and other Stakeholders Cost Effectiveness

Energy Conservation

Century Pulp & Paper is committed to strengthening its position as a market leader. This isaccomplished by developing a company-wide culture that promotes:

Customer delight Quality Environmental

safety and information security initiatives Environmentally-friendly

safe and energy-efficient operations Protection of information for all stakeholders

The company will continue to pursue:

Improvement in its products, processes and services

The protection of information assets and customer information from all threats through theimplementation of suitable information security management systems Compliance with relevantlegislations Communication and reinforcement of its policies throughout the company.


PRODUCT

Manufacturing Manufacturing Manufacturing Manufacturing Critical QualityProcess of Paper Process of

BoardProcess ofTissue

Process ofRayon GradePulp

Tests

Manufacturing Process of Rayon Grade Pulp

Writing & Printing Copier IndustrialPaper

Board Tissue Rayon


PRODUCT




Tests



Board Tissue Rayon


PRODUCT




Tests



Board Tissue Rayon


CRITICAL QUALITY TEST FOR VARIOUS GRADES OF PAPER

Critical quality tests for various grades of paper. All products at Century Pulp & Paper undergovarious stringent tests to maintain quality and consistency.

Our business aligned HR practices are designed to be employee friendly, while driving a cultureof accountability and high performance. We invest continually in building our HR systems,practices and policies, and focus on enhancing functional and managerial capability.

Century Pulp and Paper (CPP) is a producer of excellent quality writing and printing paper, and aleading manufacturer of tissue and board, as well as Rayon Grade Pulp (RGP) products. Adivision of Century Textile and Industries Ltd (CTIL), Century Pulp and Paper has achievedsignificant efficiencies in various disciplines, all within a short time.

Century's vision for the future is committed towards the manufacturing of quality products thatmeet international standards. This must be achieved by meeting cost objectives without sacrificingthe needs of different stakeholders such as customers and the environment.


ABSORBENT KRAFT

COP (Castor Oil Penetration): This method is used to measure the absorbency rate of paper forprinting inks with an oil-based vehicle. It is used only for easily permeable papers such asnewspapers, books and mimeographs. However, this method can also be used for any paper wherethe absorbency of an oil-based vehicle is important. A correlation has been established betweenthe results of this test and the printing quality of uncoated papers. The oil absorbency of paper isrelated to its porosity and internal structure.

MICR

Sensitivity Test – In MICR paper we put various types of chemicals which react when thesesolvents are put and turn the paper into some color. This property is to avoid forgery. The variouschemicals used are:

Benzyne Cloroform

Alcohol Sodium Matabisulphite Oxalylic acid

Amonia Acetone

Calcium Hypo etc.

For these papers to meet quality standards, the following requirements must be met: a. Watermark should be clear b. Smoothness achieved c. UV light should not glow d. Other BIS normslike GSM and tear factor must also be met.

OVERLAY TISSUE

For these papers to meet quality standards, the following requirements must be met:

Wet Strength should be from 500-1000 g/cm

Smoothness level should be from 100-150 ml/min Strength should be more than 5000 in breaking length

Uniform Caliper Uniform GSM


ARSR

For these papers to meet quality standards, the following requirements should be met:

Bulk should be more than 1.4

GSM should be from 100-185 Alkali Stain Number should be less than 3

Passing of the Floro Glucinol test Passing of the Soap Jelly Test Addition of Anti-fungal chemicals during the stock preparation stage.

BASE PAPER FOR CROMO/ARTPAPER


Surface strength Uniform caliper

Cob value

WAX MATCH


Uniform corrugation Uniform GSM, caliper High brightness

Breaking length should be very high

SHUTTERING BASE


Smoothness Opacity level of 95% Wet Strength


CARBONLESS PAPER


Smoothness

GSM should be from 45-50 for duplicate books of various colors.

CENTURY PARCHMENT


Good Strength Clean Water Mark

Smoothness

BIBLE PRINTING

For these papers to meet quality standards, the following requirements should be met: High opacity of 95%

Good strength properties Scattering co-efficient

ISO Brightness of at least 88%

OTHER GENERAL TESTS WHICH ARE CONDUCTED FOR VARIOUSWPP ARE:

GSM

Caliper Brightness ISO

Bulk Burst Factor Ash Content

Breaking Length Smoothness

Porosity COBB Value

Opacity


WRITING & PRINTING

OVERVIEWCentury Pulp & Paper range of writing and printing paper is used to produce a wide range ofstationery such as notebooks and envelopes. Entry-level varieties such as cream wove; map lithoand coated paper are popular. Although the market share of higher-quality paper has beenincreasing, the entry-level varieties still form the bulk of demand.

Printing paper is specially designed for printing books, note books, and publishing and printingdue to its uniform, fast ink-trapping and drying qualities, as well as its dimensional stability.Demand for paper in this segment depends largely on these factors:

Population growthLevel of literacyPublic and private spending on educationLevel of business activityGrowth in the printing industry.

CENTURY PRINT PAPER

END USE Publishing and Printing development

Multi color jobs Textbooks

Children Books Envelopes Magazines


COPIER

Copier Paper is typically a white commodity in writing paper grade. Copier Paper now marketedas multi-purpose paper to be used in most common type of office machines includingphotocopiers, computer printing paper and various other printer types.

Copier Paper is of good quality and uniform dimension paper, which is used for photocopying.

BOARD


INDUSTRIAL PAPER

OVERVIEW

Century manufacture different type of paper used in Industrial use: wide range of packaging,cardboard, tissue, insulation and wrapping products. Demand for industrial paper is often affectedby these factors:

Industrial production

Growth in the packaging industry Development in technology Substitution by other materials

PAPER PROCESS


TISSUE

OVERVIEW

Set up in 2009, Century is the largest and most advanced manufacturer of Jumbo Soft TissuePaper Rolls in India. Spread over 60,000 sqm, its plant houses the state-of-the-art"Metso Machine with Crescent Former"that produces world-class tissue paper. Asa result, quality standards are consistentlyhigh and this contributes to the highhygiene levels and overall cleanliness AH& AfH.Century's commitment to quality has beenrecognized with international certificationssuch as ISO 9001:2008, ISO 14001:2004and OHSAS 18001:2007. In addition,napkins under the Century Pulp & Paperbrand are FDA compliant.Products: Facial Tissue, Towel GradeTissue, Napkin Tissue and Toilet TissueCapacity: 100 tones per day (TPD)

Tissue process


BIRLA CENTURYLAUNCHING SOON DIGITAL PRINT COLLECTION OF BEDSHEETS

Birla Century is set to launch during August 2012, entire bed and bath category range such asbed sheets, towels, top of the bed products etc. This range will cater to both economy andpremium market segments. The premium product range consist of attractive packaging with theproducts made out of supreme counts in 100% superior cottons, new age beers and the digitalprint collection in multi colour prints and vibrant motifs. The made ups are crafted to meet upthe international stitching standards and the size.

In our pursuit to adapting latest technologies Century Denim has installed Oerlikon SchlafhorstOpen-end machine Autocoro 8, which is considered to be latest revolution in open-endSpinning System. It is user friendly machine requiring very low maintenance and having veryhigh productivity. Its quick start ensures minimum production loss and Corolab QX clearingsystem ensures fault free nalyarn.

It is capable of producing uptove lots at a time so lot change losses are minimized. Equippedwith Corobox 20, single motor driven rotors, magnetic axial and radial bearings, single motordriven opening rolls, single motor driven & digitally controlled sliver intake, it is capable ofworking at rotor speed of 20,000 rpm to 1,60,000 rpm for high production rate.

This is one of the rest machine installed in Century Denim equipped with fancy yarn spinningsystem for creative designing and production of various varieties of fancy yarns for presentdays fashion requirements with cost effectiveness.


PAPER

We are one of the largest paper producers in the country and with the commissioning of thepackaging board machine, we have become only paper company to offer writing and printinggrades, copier, speciality grades, tissue and packaging boards manufactured from varied mix ofthe raw materials at a single location. This variability of raw material and a mix of the variouspaper and board offers us to be an agile supplier of paper related solutions to the customers,creating additional value for ourselves in the process.

During the coming year, we plan to launch products in various segments which are aimed to bethe market leaders in terms of quality and innovation. Century speciality tissue has now beenwell established in the International market. We are known for our ability to provide customerdelight through a culture that encompasses creation of value and wealth through promotion ofquality, environmental and safety concerns. Excellence at Century continues to be allpervasive. Our goal to reach the top in the world of paper and paper board industry will soonbecome a reality.

Paper

Other features of Century Pulp & Paper production include:

Size press: Used for surface coating of paper with starch.

Stock department: The heart of the machine where various pulp preparation is done to producepaper of different properties. Dyes are also added here in a process called internal sizing.

Pulp properties: Our pulp properties are changed from hydroscopic to hydrophobic.Digesters: Century Pulp and Paper carries only vertical digesters instead of cylindrical onessystems.


OBJECTIVEOF

THE PROJECT


OBJECTIVE OF THE PROJECT

MAIN OBJECTIVES:

To assess the amount of the forms (Form 11, Form 16, Form C, Form F, Form G, Form H, FormI) for the year 2010-2011.

To help the management in filing the sales return for the financial year 2010-2011.

METHODOLOGY OF THE PROJECT

The methodology adopted for drawing this project is based on the field work and the deskresearch.

The field training that I have received from one of the sales tax office has provided me the basicinsight of sales and its taxation policy system including some hands-on exposure of the realworking of the finance department of a company. While undergoing the field training, it has beennoted how much efforts it take to first segregate the forms in their series then to put in the rightformat. Each and every single form is precious for the company. Because these forms act as aproof for the company to file sales return. If any of the form gets lost the company has to issue abond of Rs. 1 lac. for one form.

TOOLS USED FOR ANALYSIS FOR MEASURING THE AMOUNT COVERED BYVARIOUS FORMS:

Graphical Representation of Analysis:

Pie charts

Bar Diagrams

DATA COLLECTION APPROACH:

Secondary data has been used to carry out the research successfully. The secondary data has beencollected from the system of the company itself.


METHOD OF COMMUNICATION:

In order to minimize the bias in data collection, the method of personal rectification by Mr.Vikrant Mangla has been done successfully.

THE SOURCES OF THE DATA ARE AS FOLLOWS

The study relies to a great extent on secondary data:

SECONDARY DATA:

Information is collected through system of the company. From various text books Journals and magazines


FINDINGSAND

ANALYSIS


FINDINGS AND ANALYSIS

INQUIRE NUMBER ONE.

GROSS SALES*

51335500 48335000 42164500 38514000 35063500300025002000150010005000

2006-07 2007-08 2008-09 2009-10 2010-11*GROSS SALES ARE NET OF REBATES AND RETURNS

As we can see that the amount of sales has increased in past years which also tells that the amountof tax on sales will also get increased with the increase in the sales.


INQUIRE NUMBER TWO

GROSS PROFIT

800 758

700

600 566552

584

500 497

400

300

200

100

0

2006-07 2007-08 2008-09 2009-10 2010-11

As we can see that the amount of sales has increased in past years which also tells that the amountof tax on sales will also get increased with the increase in the sales.


SUMMARISED FINANCIAL RESULTS :(Rs. in crore)

2010-11 2009-10Profit after interest, VRS payments , gratuity, ex-gratia/compensation etc.

583.51 758.00

LESS:

Depreciation 239.66 234.47Prior Period Adjustments (NET) - 0.19Provision for taxation 93.76 222.61Deferred Tax Debit/(cerdit) 12.60 346.02 (38.74) 418.53NET PROFIT 237.49 339.47

ADD:

Balance brought forward 307.89 178.10Avallable profit deait eith as under 545.38 517.57

Transfers & Appropriations:

Proposed Equity Dividend 51.18 51.18Corporate Dividend Tax 8.30 8.50General reserve 150.00 150.00Balance carried forward 335.90 307.89

545.38 517.57

Expenditure on R & D (Rs. in crore)Capital 2.68Recurring (including contribution) 5.60Total 8.28Total R & D expanditure as a percentage of total turnover 0.16


ANNEXURE-011OF

FORM -IV


ANNEXURE-011 OF FORM -IV

1. TIN OF THE DEALER 05001266166

2. NAME AND ADDRESS OFTHE DEALER

CENTURY PULP ANDPAPER (PROP: CENTURYTEXTILES ANDINDUSTRIES LTD.)GHANSHYAMDHAM P.O. –LALKUA PIN CODE -262402DISTT. NANITALUTTRAKAND

3. PERIOD LIST OF FORM-F

4. SUBMITTED 3208

CPP 193930817.00 194314360.00KOLKATTA 1008917703.00 1009301246.00

THE TOTAL OF STOCK TER FOR MAY AMOUT SHOWN IN RETURN FOR MAY INMAY RETURN DIFFRENCE SHOWN IN ANNUAL RETUEN


TIN of the dealer 0 5 0 0 1 2 6 6 1 6 6

Name and adress Century Pulp And Paper

of the Dealer(Prop : Century Textiles & IndustriesLtd.)GhanshyamdhamP.O. – LalkuaPIN Code - 262402Distt. – NanintalUttarakhand

Period From 01.04.2010 To 31.03.2011

List of Form-H Submitted

Series and SerialNo. Issuing State Name and Address TIN

Quarterto Amount

of Form-Hsubmitted of the Purchasing

whichForm covered by

Dealerisrelated the Form-H

H-1-115687 West Bengal Krishna Traders 19370054258 First 602904.00H-1-115687 West Bengal Krishna Traders 19370054258 First 602904.00

1205808.00

H-1-115688 West Bengal Krishna Traders 19370054258 First 618390.00618390.00

H-1-115689 West Bengal Krishna Traders 19370054258 First 613521.00H-1-115689 West Bengal Krishna Traders 19370054258 First 642736.00H-1-115689 West Bengal Krishna Traders 19370054258 First 642736.00

1898993.00

H--1115690 West Bengal Krishna Traders 19370054258 First 642736.00H-1-115690 West Bengal Krishna Traders 19370054258 First 613521.00

1256257.00

H-1-115691 West Bengal Krishna Traders 19370054258 First 998189.00


998189.00

H-1-136181 West Bengal Dona International 19881690261 First 503369.00H-1-136181 West Bengal Dona International 19881690261 First 491924.00

995239.00

H-1-137417 West Bengal Les Classiques 5001266166 First 518759.00H-1-137417 West Bengal Les Classiques 5001266166 First 523670.00

1042429.00

H-1-137418 West Bengal Les Classiques 5001266166 First 524512.00524512.00

H-1-115692 West Bengal Krishna Traders 19370054258 First 847856.00H-1-115692 West Bengal Krishna Traders 19370054258 First 1112490.00H-1-115692 West Bengal Krishna Traders 19370054258 First 855564.00H-1-115692 West Bengal Krishna Traders 19370054258 First 629469.00

3445379.00

H-1-115693 West Bengal Krishna Traders 19370054258 First 855564.00H-1-115693 West Bengal Krishna Traders 19370054258 First 855563.00H-1-115693 West Bengal Krishna Traders 19370054258 First 1032842.00H-1-115693 West Bengal Krishna Traders 19370054258 First 683423.00H-1-115693 West Bengal Krishna Traders 19370054258 First 858133.00H-1-115693 West Bengal Krishna Traders 19370054258 First 847856.00H-1-115693 West Bengal Krishna Traders 19370054258 First 855564.00H-1-115693 West Bengal Krishna Traders 19370054258 First 855564.00H-1-115693 West Bengal Krishna Traders 19370054258 First 855564.00H-1-115693 West Bengal Krishna Traders 19370054258 First 1068812.00H-1-115693 West Bengal Krishna Traders 19370054258 First 629469.00

9398354.00

H-1-136182 West Bengal Dona International 19881690261 First 543351.00543351.00

H-1-115138 West Bengal Dona International 19881690261 Second 570925.00570925.00

H-1-115139 West Bengal Dona International 19881690261 Second 528269.00H-1-115139 West Bengal Dona International 19881690261 Second 545141.00

1073410.00


1072864.00



1052851.00

H-1-142148 West Bengal Krishna Traders 19370054258 Second 642343.00H-1-142148 West Bengal Krishna Traders 19370054258 Second 642343.00

1284686.00


1279726.00

H-1-142150 West Bengal Krishna Traders 19370054258 Second 647303.00H-1-142150 West Bengal Krishna Traders 19370054258 Second 644823.00H-1-142150 West Bengal Krishna Traders 19370054258 Second 644823.00

1936949.00


1507894.00

H-1-142152 West Bengal Krishna Traders 19370054258 Second 855631.00855631.00



H-1-143793 West Bengal Dona International 19881690261 Third 523008.00H-1-143793 West Bengal Dona International 19881690261 Third 518247.00

1041255.00

H-1-144063 West Bengal Krishna Traders 19370054258 Third 629894.00H-1-144063 West Bengal Krishna Traders 19370054258 Third 839858.00H-1-144063 West Bengal Krishna Traders 19370054258 Third 620239.00H-1-144063 West Bengal Krishna Traders 19370054258 Third 627480.00H-1-144063 West Bengal Krishna Traders 19370054258 Third 627480.00

3344951.00

H-1-144064 West Bengal Krishna Traders 19370054258 Third 612999.00H-1-144064 West Bengal Krishna Traders 19370054258 Third 612999.00H-1-144064 West Bengal Krishna Traders 19370054258 Third 629894.00


H-1-144064 West Bengal Krishna Traders 19370054258 Third 629894.00H-1-144064 West Bengal Krishna Traders 19370054258 Third 629894.00

3115680.00


1259788.00

H-1-144066 West Bengal Krishna Traders 19370054258 Third 629894.00629894.00

H-1-138917 West Bengal Les Classiques 5001266166 Third 583767.00583767.00

H-1-138918 West Bengal Les Classiques 5001266166 Third 582975.00H-1-138918 West Bengal Les Classiques 5001266166 Third 582786.00

1165761.00


1390183.00


H-1-144069 West Bengal Krishna Traders 19370054258 Third 796417.00H-1-144069 West Bengal Krishna Traders 19370054258 Third 796417.00H-1-144069 West Bengal Krishna Traders 19370054258 Third 755389.00

2348223.00


H-1-143794 West Bengal Dona International 19881690261 Third 556873.00H-1-143794 West Bengal Dona International 19881690261 Third 558809.00

1115682.00


NAME OF PARTY PLACEFORM IAMOUNT

PM4SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 3717973SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 3749875SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 3954492

11422340

REPRO INDIA LIMITED SURAT 3704286REPRO INDIA LIMITED SURAT 3632095

7336381

SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 38170693817069

SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 581252SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 1884866SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 3608434SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 2549353SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 3493676SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 6147000SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 791615SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 2432203SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 1839890SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 4810146SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 4450816SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 2066894

34656145BAGASSEREPRO INDIA LIMITED SURAT 3812509

3812509

SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 2595723SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 1704106SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 1865324SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 2729955SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 4023902SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 4946112

17865122

SUNDARAM MULTIPAP LTD.(SEZ UNIT) SURAT 2884713SUNDARAM MULTIPAP LTD.(SEZ UNIT) KUTCH 933869

3818582


REPRO INDIA LIMITED SURAT 69268546926854

WPPSYNDICATE PRINTERS SURAT 2192898

TOTAL 91847900

A/C HEADAMOUNT(Rs.)

PAPER SALE SEZ UNIT WPP 2190161PAPER SALE SEZ UNIT BAGASSE 32193355PAPER SALE SEZ UNIT PM-4 56936808

91320324


FINDINGS


FINDINGS

Research has been made on the topic “assessment of the sales and various forms which are used inthe benefit of sales tax in Century Pulp And Paper. Based on the analysis and the interpretation ofthe data findings and suggestions are recorded which are as follows

Sales lower than budget by 9 cr.

Other income from renewable energy of rs. 2 cr. not realized.

Savings should be there in the travelling expenses. Mr. jasveer pointed that some of the peopletravel by car from kichha to lalkua or vice versa just for a single sign instead of doing it by emailor post which is creating huge losses in the travelling expenses.

Century does not have limits to pay the mobile bills of the employees which is also contributing inthe losses held by the company and the finance department. Mam has said that she’ll circulate thepolicies once again.

Marketing people also creating huge losses in the travelling expenses.


CONCLUSION

It can be concluded by saying that Century Pulp and Paper (Century textile and industries ltd) isdoing good in trade promotion activities with respect to its’ competitors and thus achieved to winhearts of most of the whole sellers in India and also out of the Country.

Century Pulp and Paper has to focus on prompt payment of incentives as they promise beforeenrollment of a membership progaramme in order to maintain and enjoy the loyalty status morethan its’ competitors. Also from this study, it can be suggested that Century Pulp and Paper has totake opinion from the distributor sellers for these trade loyalty programmes as the field force has agood considerable idea about the market rather than the Head Office who makes the list ofsuppliers and purchasing parties.

And, it is very much limited time to clearly understand the retailer satisfaction with the sale of thequality made paper by the company. Apart from this we need to focus on each retailers viewcarefully in regular time intervals (periodically) so to the best possible is presented here. Still thereis a lot of scope for developing on this subject, as excellence is not limited always.

Thus in brief, we can conclude that managing and measuring Central sales tax can bring aboutpositive benefits to distributor, company and sales people as well as customers. Customersatisfaction boosts more sales and loyal customer to distributor and in turn helps to produce moresatisfied ultimate customers to the company.


BIBLIOGRAPHY


BIBLIOGRAPHY

ChapterNos.

Title ofChapter

Sources

2Overview ofCentral SalesTax

Uttarakhand VAT Actwww.centralsalestax.nic.in/

3 Introduction toCentury PulpAnd Paper

http://www.centurypulpandpaper.comhttp://businesstoday.intoday.in/http://articles.economictimes.indiatimes.com/2013-12-10/news/45035404_1_paper industry

8 SuggestiveAnalysis of theStudy

1.Hindu Business Line –20122. Lalitha Sridhar, India Resource Center,August19,20133.Business World, July, 2012