Tax World

Sales Tax Decisions

P. C. Joshi, Advocate


News from Andhra Pradesh

The Government of Andhra Pradesh issued a notification on 30th April 2007, whereby certain criterias have been laid down for deemed assessment of the returns furnished by the respective dealers without requiring their presence for production of books. However, the cases under Works Contract, Lease transactions, Units under industrial incentives, cases where incriminating materials were found, cases under the Central Sales Tax Act, cases under information in AR-II were not filed or where additional liability was indicated and the cases of all oil companies will not be covered by the aforesaid notification.

Source : Contributed by Shri S. Hanmanth Rao, Advocate, Hyderabad.

News from Kerala

  1. The Legislative Assembly of the State of Kerala passed Act 15 of 2007 at the Kerala Finance Act 2007, so as to give effect to the budget proposals covered in the budget for the financial year 2007-08. The amendments inter alia provide for several changes in various enactments including the Kerala Stamp Act, Kerala General Sales Tax Act and Kerala Motor Vehicle Taxation Act. Amendment to Third Schedule appended to the Kerala General Sales Tax Act includes life saving medicines and a complete list of IT products specifying the HSN heading.

  2. The Commissioner of Commercial Taxes, by his Circular dated 30th July 2007, clarified that though the payment of tax can be effected through a Cheque or Draft, the same drawn on outstation banks may invite collection charges by the collecting bank. Therefore, to the extent of such collection charges, the assessee in question would be treated as in arrears recoverable as arrears of revenue.

Source : Kerala Tax Reporter, Vol. 15 Part IX, September 2007, Page 254.

News from Tamil Nadu

  1. Exemption

The Tamil Nadu Government, by issuing a Notification under section 30(1) of the Tamil Nadu VAT Act, have granted complete exemption to the sale of beedi, beedi tobacco, tobacco leaves, snuff and cheroot. Such exemption have been made effective from 1st April 2007.

Source : The Tamil Nadu Commercial Taxes Tribunal, Vol. 13, Sept. 2007, Page 201.

  1. Impact of VAT Act

The Commissioner of Commercial Taxes have clarified that the concessions granted under Section 8(5) of the C.S.T. Act, 1956 prior to implementation of the VAT Act, would continue even after its implementation and accordingly the sales to educational institutions would be liable at the concessional rate of 4%, while the sales by EOU would be fully exempt, so also the sales to exporters against Form ‘H’.

Source : The Tamil Nadu Commercial Taxes Tribunal, Vol. 13, Sept. 2007, Page 204.