Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 585 - HC - VAT and Sales TaxScheme of compounding - Held that:- It is evident that under the scheme of compounding, a dealer who has existing branches or who opens new branches during the assessment year, has to pay compounded tax in respect of all the branches. In other words, the scheme of the section is that a dealer, who has opted for payment of tax under section 8(f), has to pay tax at the prescribed rate, not only in respect of his head office but also in respect of all his branches. If such a dealer exercises option for the succeeding years, his liability for those years are to be determined in terms of clause (v), which is based on the tax paid for the previous year. The provisions of section 8(f) do not provide that in the event of closure of a branch, either at the commencement or during the course of the assessment year, a dealer has the right to reduce the tax payable under section 8(f) proportionally or otherwise. Therefore, even if the petitioner had closed their Kollam branch as on March 31, 2012, that could not have had any impact on their tax liability under the scheme of compounding for the assessment year 2012-13. W.P. dismissed.
|