SALE TAX ON REP.LICENCE

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RUDRA DATT

practice

78 Points Posted on 15 June 2007

IN 1992-93 REP.LICENCES WERE SOLD. IN ORIGINAL ASSESSMENT ON 25.5.1995 NO TAX WAS IMPOSED ON REP LICENSE SALE. BUT ON 2.6.97 IN REASSESSMENT ORDER 7% TAX WAS IMPOSED ON SALE OF REP. LICENSES. ON THE BASIS OF A SUPREME COURT ORDER IN VIKAS SALES CORPN. VS CCT (1996) 102 STC (SC) . HOWEVER THIS MATTER REFERREDT TO CONSTITUTION BENCH. ANY BODY IS KNOWN ABOUT THE DECISION OF THE CONSTITUTION BENCH ON THE TAXABILITY OF REP LICENCE.

NOW ANY EXPERT OF SALES TAX CAN ADVISE ON THIS ISSUE WHETHER REP. LICENCE IS TAXABLE IN 1992-93. ON 18-1-1995 COMMISSIONER OF SALE TAX HAS ISSUED A CIRCULAR NO F-25 IN WHICH IT IS SAID THAT SALE OF REP LICENCES SHOULD NOT GO UNNOTICED REGARDING TAXABILITY OF TAX. THIS CIRCULAR HAS BEEN ISSUED IN THE LIGHT OF JUDGEMENT REPORTED IN 95 STC PAGE 336 OF KERALA HIGH COURT WHICH HELD REP LICENSE A MOVEABLE PROPERTY WHICH IS COVERED UNDER THE DEFINITION OF GOODS.

I SHALL BE THANKFUL TO U FOR UR VALUALBE ADVICE. RUDRA DATT

Replies (2)

finsuraj

34 Points Posted on 19 June 2007

As far as my understanding goes, the above ruling in Vikas Sales Corp still holds good. Even under VAT, such transactions are taxable being a goods within the meaning of VAT law. What was reversed bySupreme Court was it's earlier judgement in case of taxability of lotteries but REP LIC, DEPB, exim scrips etc continue to be covered under the definitiom of goods