Turnover under KVAT includes balance-price reimbursement on resale; only separately shown trade discount in the invoice is excluded.

Amounts received as reimbursement of the balance price on resale of goods purchased at a lower price are deemed turnover under the Kerala Value Added Tax Act. The statutory definition of turnover and Explanation VII bring such receipts within the tax base where the buyer later receives an additional amount from the seller after resale below purchase price. The trade discount exclusion applies only when the discount is separately shown in the tax invoice and the purchaser pays only the reduced price. A circular dealing with input tax did not alter this statutory position. On that basis, the receipt was includible in turnover and the assessment was upheld in favour of the Revenue.

---

---

Issues: Whether amounts received by the assessee as reimbursement of the balance price on resale of goods purchased at a lower price were includible in turnover under the Kerala Value Added Tax Act.

Analysis: Section 2(lii) defined turnover as the aggregate amount for which goods are bought or sold, and Explanation VII specifically deemed amounts received towards reimbursement of the balance price, in a case where goods purchased are sold at a lower price, to be turnover. On the facts, the assessee sold cement below the purchase price and later received further amounts from the seller as reimbursement of the balance price. That receipt, though described as discount reimbursement, fell within the statutory deeming provision. The exclusion for discount applied only where discount on the price is separately shown in the tax invoice and the buyer pays only the reduced amount; it did not cover the reimbursement received here. The circular relied on by the assessee concerned input tax and did not affect the statutory scheme.

Conclusion: The amount received by the assessee was rightly included in turnover, and the assessment was correctly upheld in favour of the Revenue.

Ratio Decidendi: A receipt that reimburses the balance price on resale of goods purchased at a lower price is deemed turnover under the KVAT Act, whereas only separately shown trade discount in the tax invoice is excludible.

---