Input restriction under rule 131
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 June 2013
Iam a timber dealer in Karnataka purchasing timber logs from Unregistered dealers and after processing the timber logs we will sell the cut sizes and also its by products like firewood and saw dust.
Whereas saw dust is taxable @ 5.5% and cut sizes is at 14.5% and I also pay tax on URD purchases @ 14.5%. Here I am giving some example
I have utilized the above urd purchases of Rs. 6812415 fully. Now after audit sales tax authorities were restricted input tax under rule 131 of Karnataka vat act on sale of firewood of Rs. 238380 and imposed a tax Their calculation is as under
NON-DEDUCTABLE INPUT TAX= (SALES of exempt goods + non taxable transactions) X total input tax On URD Purchases
TOTAL SALES (INCLUDING NON – TAXABLE TRANSACTION)
=(238380+0) x 987800 = 25410.00
9266954
Whether the sales tax authorities are correct or not, please clarify
Whereas saw dust is taxable @ 5.5% and cut sizes is at 14.5% and I also pay tax on URD purchases @ 14.5%. Here I am giving some example
I have utilized the above urd purchases of Rs. 6812415 fully. Now after audit sales tax authorities were restricted input tax under rule 131 of Karnataka vat act on sale of firewood of Rs. 238380 and imposed a tax Their calculation is as under
NON-DEDUCTABLE INPUT TAX= (SALES of exempt goods + non taxable transactions) X total input tax On URD Purchases
TOTAL SALES (INCLUDING NON – TAXABLE TRANSACTION)
=(238380+0) x 987800 = 25410.00
9266954
Whether the sales tax authorities are correct or not, please clarify
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 October 2014
a decesion in this regard from karnataka high court the case is M/s. M.K.Agro tech(p) Ltd Vs The state of Karnataka on 17/07/2014 by judges1. justice .N Kumar and Justice B.Manohar
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- Two seprate Invoice needed
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
