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2001 (8) TMI 1165 - SC - VAT and Sales TaxWhether subsidy given to the dealer as a part of the sale price and added it to the turnover and levied sales tax justified? Held that:- Appeal allowed. The expenses which are incurred which are relatable to the purchase of a taxable item may or may not be regarded as part of the purchase price but as far as the present case is concerned, lumpsum payment which, in the very nature of things, is ex gratia cannot be regarded as being part of the sale price and consequently form part of the gross turnover of the dealer. There was no statutory obligation of TISCO to pay any amount to the dealer. It is only as a measure of staff welfare that ex gratia payment was made from time to time which, in our opinion, cannot be regarded as part of the sale price of the meals sold by the canteen to the employees
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