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2014 (6) TMI 874 - HC - VAT and Sales TaxDisallowance of discount - Held that:- This Court had an occasion to consider the question whether the discount falls outside the turnover in the case of Southern Motors v. State of Karnataka [2015 (3) TMI 433 - KARNATAKA HIGH COURT], wherein it was held that "once the sale invoice is issued and the sale price is collected along with tax, the aggregate of such sale constitutes the total turnover and the tax is payable on taxable turnover. To arrive at the taxable turnover what are the deductions that are legitimately be made ii provided under Rule 3(2) of the Rules. One such permissible deduction is that the amount paid by way of discount provided that the discount is reflected in the sale invoice. Accordingly, by issuing a credit note after receiving the amounts, of course, before filing the returns it cannot be said that the amount of discounts goes outside the purview of the turnover." - discount do not find a place in the tax invoice. So called discount is given after completion of the sale/which is not acceptable and therefore, the order passed by the Tribunal excluding discount from taxable income is erroneous. Accordingly, the said order is hereby set aside and the order passed by the Assessing Authority which was confirmed by the First Appellate Authority is restored. - Decided in favouro of Revenue.
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