CASE OF THE FACT

Assessee Company is a company registered under the provisions of the Companies Act, 1956,(hereinafter referred to as “Company”) entered into agreement with another company (hereinafter referred to as “Land Owner”) to develop a commercial complex on the land owned by Land owner. and engaged contractor for construction of said commercial complex. In this respect Company provided some material (like Cement, Iran & Steel & sanitary items) to contractor free of cost for construction of the complex. The material was purchased by Company from registered dealer after paying VAT.

During the period of execution of work, due to some reason the agreement was cancelled and the Company received Rs. 1,86,11,000/- from land owner as reimbursement against the expenses made by the Company for construction.

Observation of Sale Tax Department:

1. The sale tax department wants to impose VAT on the basis of section 2(g) of CST Act 1956.

2. They do not want to give the benefits of input tax credit because the Company was not as registered dealer at the time of execution of work.

Our Observation:

According to section 2(d) of CST Act 1956, Company did not fall within the purview of VAT at the time of execution of work, hence it was not necessary to get registration under VAT.

However, the VAT became applicable due to cancellation of agreement, in this respect Company should avail the benefit of input tax credit against its VAT liability on the following reason:

1. There is no value addition in the amount of reimbursement, it’s purely reimbursement.

2. The VAT on such items is already paid by registered dealer on behalf of the Company.

3. Since the VAT became suddenly applicable hence the benefit of input tax credit should be made applicable on occurrence of the sudden event, because the company was not liable for registration under VAT at the time of execution of work.

What is Your Observation?

SIR,
I AM HAVING FIRM IN DELHI AND HAYRANA AND IN DELHI WE PURCHASE COMPUTERS WITH VAT TAX AND THEN WE SEND IT TO HARYANA (YAMUNA NAGAR) AGAINST F FROM CAN WE PAID TAX ON THESE GOODS IN DELHI , OR ONLY PAY IN YAMUNA NAGAR (HARYANA) VAT ON SALES

BECAUSE THIS IS OUR BRANCH TRANSFER I AM RIGHT OR NOT

Dear Seniors
Myself is Zakir working in Accounts Dept. at Himachal in one Pvt. Ltd Company, My query is
I have done assessment for F/Y 2009-10, said F/Y we have made one stock transfer from our HP Branch to KA Branch against Form F, for that our KA Branch issued one Form F in that Form they have mentioned wrong Invoice date (inv. Date is 20/11/2009 but they mentioned 20/01/2009) the same Form I submitted in Sales Tax at the time of Assessment.

Now after 06 month in their audit they found this date error. How to resolved this matter

Please help await for your valuable and prompt response

Regards’
Zakir

Hi, Can anybody tell me the cost of registration of VAT for a new company.
Nature of business is Interior execution.
any one from bangalore can help me will be great.
Regards
Sachin m.i

Dear Sir,

I was just wondering if Tile Clay or Water Tanks Clay can be sold in karnataka to other states.

If yes under which category will it come. Thank you.

A person in Maharashtra planning to start a business expects his very first sales invoice value to be of 10 Lac but he cant issue an invoice unless he is registered under MVAT.Unless he issues his first invoice he doesnt crossed the threshold limit.Now,if he opts for Voluntary registration, he is required to pay 25000 as deposit & Fee 5000 whereas in case of threshold registration the Fee is 500 Only. Is there any way he can get threshold registration & thus avoid paying deposit & also save Rs.4500?

Dear All,
One of the wholeseller of ceramic tiles has applied for TIN number but goods purchase from company is before the application of such TIN number. In this case company charge the Vat but Wholeseller can not charge because he has applied for TIN. So in this case my question is that the wholeseller can write in his invoice applied for or he can purchase aginst Retail invoice.

dear sir,
pls tell me intrest rate on late payment of professional tax for proprietorship firm ? how to calculate monthly basis or daywise ? and which day is last date of payment in every year ?

Dear Sir,

We are government contractor, we have received Tax relief from income tax department on tax of 2% on TDS & WCT VAT.

while releasing payment Government employer also deducting 2% TDS & WCT VAT.

I request you to inform that even after deduction from Govt. Employer we have to pay sales vat 8% on it

With Regards,

Mangesh Kiranpure
9022546402
9768509273

Dear sir,
i am a manufacturer of medical equipments.most of the times i get the manufacture done from others and they Charge me VAT @ 14%. As per Karnataka VAT Act i am liable to VAT @ 5% on sales. Can i avail input tax credit 14% and set it off against my out put tax and pay the balance amount to the department.