Compounding Option Kerala VAT

[Binu Karuthedath]

Dear Sir

One of the Assessee is registered Kerala VAT and manufacturer of Ayurvedic Medicines as per the Drug License and also they have choose an option to pay Tax on MRP under section 8 for preceding year and issue invoice in the form 8H .Now assessee is decided that not opting compounding payment this year , is this right? is any problem to assessee from VAT

AI Summary

Compounding option under Kerala VAT is discretionary; dealers may switch basis but must notify the tax department.
The Kerala VAT option to charge tax on MRP is discretionary and a dealer may switch between charging VAT on MRP and on sale value, provided the choice is communicated to the department. An assessee who has applied online for compounding permission but has not received formal approval should consult the assessing authority to resolve the pending application or to pursue withdrawal and procedural clarification.