State · Delhi

Schedule 2 of The Delhi Sales Tax Act, 1975 in hindi

THE SECOND SCHEDULE [See section 4 (1) (b)] 1. Coal including coke in all its forms. 2. Cotton as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956). 3. Iron and steel as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956). 4. Jute as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956). 5. Oil seeds as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956). 6. Hides and skins, whether in a raw or dressed state. 7. Cotton yarn as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956), and cotton thread. 40

Summary

The Second Schedule lists goods of special importance, often referred to as declared goods.
Under Section 4 of this Act, the tax rate for these goods is determined by the Central Government through notifications.
The tax rate for goods in this schedule is strictly capped and cannot exceed four paise in the rupee.
This schedule includes essential raw materials and industrial goods like coal, iron, steel, cotton, and jute.
It also includes oil seeds, cotton yarn, cotton thread, and hides and skins in either raw or dressed states.
The definitions of cotton, iron, steel, jute, oil seeds, and cotton yarn are taken from Section 14 of the Central Sales Tax Act, 1956.

Practical examples

1Ramesh, a steel trader in Delhi, sells a shipment of steel beams to a builder in December 1975. Since iron and steel are listed in Item 3 of the Second Schedule, the sales tax rate cannot exceed four paise in the rupee.

2A textile manufacturer named Sunil sells cotton yarn to a local weaving unit in February 1976. Under Section 4, the tax on this cotton yarn is calculated using the special low rate set by the Central Government, which is capped at four paise in the rupee.

FAQ

1. What is the maximum tax rate that can be levied on goods in the Second Schedule?

The tax rate on Second Schedule goods is determined by the Central Government but is strictly capped at a maximum of four paise in the rupee.

2. Which goods are included in the Second Schedule?

The Second Schedule covers coal (including coke), cotton, iron and steel, jute, oil seeds, hides and skins, cotton yarn, and cotton thread.

3. Where do the definitions of cotton, iron, and steel come from for this schedule?

They are defined by cross-reference to Section 14 of the Central Sales Tax Act, 1956.

4. Can the Administrator of Delhi change the tax rate of Second Schedule goods independently?

No, the rate is determined from time to time by the Central Government by notification in the Official Gazette.

Test yourself

Q1.Under Section 4 of The Delhi Sales Tax Act, 1975, what is the statutory ceiling on the tax rate that can be levied on goods specified in the Second Schedule?

Q2.Under the Second Schedule of The Delhi Sales Tax Act, 1975, which federal law is cross-referenced to define items like cotton, iron, steel, and jute?

Q3.Under Section 4 and the Second Schedule of The Delhi Sales Tax Act, 1975, which authority has the power to determine the specific rate of tax for Second Schedule goods?

Q4.Under the Second Schedule of The Delhi Sales Tax Act, 1975, how are hides and skins treated for tax purposes?

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