Vat case law if any required
This query is : Resolved
Chiranjeev Sharma
(Querist)
31 May 2012
Whether mistake in presentation in vat return can be a basis for imposition of tax.
suppose we have purchased following goods:-
1) Rs.1000/- goods which is taxable at first point by paying VAt on it.
2) Rs. 2000/- goods taxable at last point.
both are interchangeable and can not be separable from each other.
We have sold both goods at cost price + VAT ( since it is a controlled good and we can not charge tax)
Now our presentation was as follows in return:-
Total sales - Rs. 3000/-
VAT @ 10% - Rs. 300/- ( though we are not required to pay VAT on First point Taxable goods)
Less:Input VAT - Rs. 100/- ( though we are not eligible for input vat claim on first point taxable goods.
Net tax paid - Rs. 200/-
Now, the tax authorities are claiming Rs. 300/- as output Vat, but they are not accepting input VAT of Rs. 100/-. hence we may require to pay Rs. 100/- twice.
Is it Justified. Whether mistake in presentation in return can be a basis for imposing tax twice in a single sale.
suppose we have purchased following goods:-
1) Rs.1000/- goods which is taxable at first point by paying VAt on it.
2) Rs. 2000/- goods taxable at last point.
both are interchangeable and can not be separable from each other.
We have sold both goods at cost price + VAT ( since it is a controlled good and we can not charge tax)
Now our presentation was as follows in return:-
Total sales - Rs. 3000/-
VAT @ 10% - Rs. 300/- ( though we are not required to pay VAT on First point Taxable goods)
Less:Input VAT - Rs. 100/- ( though we are not eligible for input vat claim on first point taxable goods.
Net tax paid - Rs. 200/-
Now, the tax authorities are claiming Rs. 300/- as output Vat, but they are not accepting input VAT of Rs. 100/-. hence we may require to pay Rs. 100/- twice.
Is it Justified. Whether mistake in presentation in return can be a basis for imposing tax twice in a single sale.
MJ Krishnamurthy
(Expert)
04 June 2012
Mr C Sharma,
This pertains to which state and what goods you are dealing? Pl give deatails..MJK
This pertains to which state and what goods you are dealing? Pl give deatails..MJK
Dhirajlal Rambhia
(Expert)
24 July 2023
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