Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

K.A. Devassykutty Versus Kerala State Electricity Board and others

Entitlement for input tax credit under the KVAT Act - Reduction in contract amount to the extent of input-tax credit - Petitioner purchased the materials on payment of tax and issued invoices, the statutory right available under the KVAT Act is to collect the entire tax from the purchaser but Board refused to pay the tax paid by the petitioner to his sellers - Held that:- even if the entire tax component was paid to the petitioner, the petitioner would have been liable only for payment of tax at .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ensure that the tax component would definitely go to the Government.

VAT as applicable under the KVAT Act, being the net tax after input tax credit, that alone would be the liability of the petitioner to the Government, which is paid by the Board. Otherwise, if the amounts already paid by the petitioner to his seller is also paid to the Government, then the very scheme of VAT would be put in jeopardy since then, for the first sale, the Government would get four per cent tax twice on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

W. P. (C). No. 10491 of 2009 (F) - Dated:- 25-5-2015 - Vinod Chandran K. J. For the Petitioner : Bobby John and P. N. Damodaran Namboodiri For the Respondents : Manoj P. Kunjachan, Government Pleader, P. Santhalingam, (Senior) and S. Sharan, Standing Counsel JUDGMENT The petitioner is aggrieved with the reduction in the contract amount to the extent of the input-tax credit, which the petitioner contends, is a statutory right under the Kerala Value Added Tax Act (KVAT) 2003. The brief facts to b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

credit; as per the provisions of the KVAT Act. 2. The claim is not against the sales tax authorities nor is there any reduction of the input-tax credit, by such authorities. The Board refused to pay the tax paid by the petitioner to his sellers, which tax is evidenced at exhibit P3 series. The rejection is based on paragraph 2 of annexure II, terms and conditions. Though the taxes and dues were to be admitted at actuals, on production of documentary evidence, it contained a rider contends the Bo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not be reimbursed to the supplier. In addition to the above, wherever VAT is applicable under KVAT Act, 2003, only the net VAT after input credit, if any shall be paid. (supplied1). 3. The petitioner's contention is that, the petitioner's entitlement for input tax credit under the KVAT Act, will not absolve the Board from paying it to the petitioner. The petitioner purchased the materials on payment of tax and issued invoices on the petitioner's value addition as also the component .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

titioner to his seller, would also be collected by the State from the seller. The concept of input tax requires no elaboration and the same is trite. 4. The learned standing counsel for the Board however, would contend that the terms of payment are regulated by a specific contract. The petitioner has specifically agreed to concede the amount of input-tax credit and not claim it from the Board. The specific terms of the contract interdicts the petitioner from recovering the tax, which is already .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he tax amounts due as per the 1Here italicised. invoices would be paid directly to the Government. In the value addition regime, as brought in by the KVAT Act, every sale is taxable and any tax paid at the earlier point, would be an entitlement for input-tax credit, to the purchasing dealer. In the present case, the first sale is the purchase of the petitioner from another dealer. The said invoice is produced as exhibit P3 series. The petitioner has paid four per cent. tax on the invoice price. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of his purchase, was deducted. Only the balance tax, i.e., the tax due on the value addition at the hands of the petitioner was remitted directly to the Government. The tax component paid by the petitioner, to his seller, which the petitioner could claim as input-tax, in his sales tax returns, was declined. 7. Even if the entire tax component was paid to the petitioner, the petitioner would have been liable only for payment of tax at four per cent. To the Government, on the value addition at h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Forum: 3B mistake

Forum: Input credit of gst paid on urd

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector reg.

Forum: transfer of shares

Forum: Input tax credit

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

Forum: GST return filing software online | Easy GST compliance management

Forum: Excise duty credit on finished stock at additional place of business.

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version