Deduction of sales tax: only the effective tax rate on finished goods is deductible, excluding input tax set-offs. The Attorney General advised that the deductible amount from the cum-duty price is the sales tax calculated at the effective rate on the finished goods, without reducing it by any input tax set-off. The Board instructed field formations not to issue, and to withdraw any issued, show-cause notices based on a contrary approach and to circulate this position for compliance.
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.
Deduction of sales tax: only the effective tax rate on finished goods is deductible, excluding input tax set-offs.
The Attorney General advised that the deductible amount from the cum-duty price is the sales tax calculated at the effective rate on the finished goods, without reducing it by any input tax set-off. The Board instructed field formations not to issue, and to withdraw any issued, show-cause notices based on a contrary approach and to circulate this position for compliance.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
