Whether KVAT Can be levied on vat tax which is included in price but separtely shoen in bill pl quote if any case law

[SANJAY SHIRGUPPE]

the assessing officer has levied tax simply on the ground that price written on the bill is inclusive of tax hence you have to pay the kvat on gross amount of bill instead net value before tax even though bifurcation of tax is shown in the bill and monthly returns are also filed bifurcating tax amount and net  value  ,. Is assessing officer justified in leving tax on tax ?  Is any judgments are available to produce  before appeallate authority

[YAGAY andSUN]

 

Though I can't find any relevant judgment but in the VAT Laws there is a specific requirement to mention the tax amount separately on the invoices which are being raised by you.  However, there can't not be any levy of double taxation on the same transaction under KVAT Act.  If, you had mentioned that prices are inclusive of taxes and this aspect has specifically mentioned on the Invoices  and in this Statutory returns, then, there is no concrete reason for assessing authority to deny your contentions.

You may also produce relevant POs and other documentory Invoices in this regard.

AI Summary

Levy of tax on tax questioned where invoice separately states tax; assessing officer lacks basis if bifurcation shown. Whether the levy of tax on tax is permissible when invoices state prices inclusive of tax but separately show the tax component; if invoices and statutory returns consistently disclose the bifurcation, the assessing authority lacks a principled basis to treat the gross billed amount as the taxable base and impose VAT on the tax component, and the taxpayer should produce supporting purchase orders and invoices to contest such an assessment.