VAT applicability to sales and purchases extends tax and input credit rules to post-enactment supplies and use-rights. Section 105 applies VAT to sales and purchases made on or after the effective date, including instalment sales, hire purchase and transfers of a right to use goods, and limits input tax credit to purchases made or use-rights exercised on or after that date. Prepayments relating to later supplies must be included in turnover in the period when the sale occurs. Transitional provisions cap VAT liability for works contracts entered under the repealed sales tax regime so it does not exceed the liability under the repealed Act, with specified temporal and contractual exceptions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
VAT applicability to sales and purchases extends tax and input credit rules to post-enactment supplies and use-rights.
Section 105 applies VAT to sales and purchases made on or after the effective date, including instalment sales, hire purchase and transfers of a right to use goods, and limits input tax credit to purchases made or use-rights exercised on or after that date. Prepayments relating to later supplies must be included in turnover in the period when the sale occurs. Transitional provisions cap VAT liability for works contracts entered under the repealed sales tax regime so it does not exceed the liability under the repealed Act, with specified temporal and contractual exceptions.
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