Tax World

TAX News

Liability of Purchaser to Seller

The Madras High Court allowed the Writ Petition by the seller against the levy of tax for the alleged contravention by the purchaser and held that the obligations undertaken by the purchaser have to be complied with by the purchaser himself and non-compliance cannot result in penalising the seller.

M/s Sree Murugan Engineering Products, Coimbatore vs. Commercial Tax Officer, Coimbatore. 2006-07 (12) TNCTJ-171.

News from Andhra Pradesh

The Government of Andhra Pradesh have amended the Andhra Pradesh

VAT Act, 2005 effective from 01st September 2006, whereby certain entries in Schedule I have been substituted by yet another amendment in Schedule IV. Accordingly, the sale of goods other than petrol, diesel oil, lubricants etc to State Government Departments and Corporations established by the State Government would be taxable at the rate specified in Schedule IV. By yet another notification dated 13th November 2006, the rules under the Andhra Pradesh VAT Act have also been amended, so as to give option to the dealers to submit all the returns electronically through electronic filing system.

Source : The Andhra Pradesh Gazette dated 13th November 2006.

News from Maharashtra

The Maharashtra Sales Tax Tribunal directed the Commissioner of Sales Tax to proceed against two officers who fabricated the records for the purpose of showing the order to be within the period of limitation, though in fact the order was passed after expiry of the statutory limitation.

Source : Cover Page of Sales Tax Review, December 2006.

News from Tamil Nadu

The State of Tamil Nadu have implemented the VAT system effective from 01st January 2007, whereunder majority of the dealers have obtained TIN Number on applications having been made online. Such a type of scientific development have speeded up the process of consideration.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 12, Nov. 2006.