APVAT RULE POSITION

[CH RAMESH]

Dear Sir,

I have one query, my client steam coal trader, he was collect TCS 1% after collection of APVAT 5% on Invoice value. But the sales tax dept. says before vat you have collect the TCS 1%. How to solve the problem. kindly tell me tcs 1% collection before vat tax or after vat tax. kindly send me any case laws is there.

With Regards,

Ramesh

Sales tax consultant

AI Summary

Tax collected at source calculation: whether TCS is levied on invoice value before or after VAT affects collection basis. Whether the Tax Collected at Source (TCS) should be computed on the pre-VAT invoice value or on the gross amount inclusive of APVAT is the operative issue. The trader collected TCS after charging APVAT while the sales tax department contends TCS must be collected prior to charging VAT, raising a compliance question on sequencing and basis for levying TCS relative to VAT.