Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: VAT RATES :: empanelment :: articles on VAT and GST in India :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4%
VAT (Value Added Tax) »
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?

RIL's VAT issue: HC rules that reduction cannot exceed tax credit
January, 21st 2013

The Gujarat high court has rejected an appeal filed by the state government challenging a tribunal's order granting relief in Value Added Tax (VAT) to the Reliance Industries Ltd.

While interpreting section 11(3)(b)(ii) and (iii) of the Gujarat Value Added Tax Act, 2003, the HC bench of justice Akil Kureshi and justice Sonia Gokani observed that reduction cannot exceed the available tax credit to a dealer RIL had purchased furnace oil, natural gas and light diesel oil from registered dealers for its business of manufacturing and selling polymers and chemicals. Such fuel was used in manufacturing.

Furnace oil is chargeable to value added tax at the rate of 4 per cent while natural gas and light diesel oil invite tax at the rate of 12.5 per cent.

As per section 11 of the VAT Act, it pertains to credit and permits a registered dealer who has purchased taxable goods to take credit on the tax paid under certain circumstances.

Clause (b) of sub-section (3) of section 11, however, limits availing of such credit under certain circumstances.

The court had to decide if a particular item falls in multiple sub-clauses, tax credit can be denied more than once.

Reliance's counsel Saurabh Soparkar and Megha Jani submitted that limitation of availing of tax credit as provided under section 11(3)((b) could be applied only once irrespective of the fact that whether a particular commodity purchased falls in more than sub-clauses of clause (b) of sub-section (3) of section 11.

The state government, however, contended that if such goods satisfy the descriptions of sub-clause (ii) and (iii) of clause (b) of sub-section (3) of section 11, denial of tax credit would operate twice.

After hearing the parties, the high court said, "If the tax credit available to a dealer is less than four per cent, the reduction should be limited to such credit and not more."

The court noted that the legislature envisaged that the reduction of tax credit under section 11(3)(b) would in no case exceed four per cent.

It further said, "If the interpretation put forth by the State is accepted, a dealer who has availed of tax credit of 4 per cent would end up surrendering credit by 8 per cent or may be in a given case by 12 per cent. Surely, the legislature could never have intended the reduction to exceed the tax credit itself. In the present case, this is precisely what would happen if the interpretation of the State is accepted."

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions