Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
The High Court considered the issue of deemed sale u/s 2(40) of the Uttarakhand Value Added Tax Act, 2005, upholding the assessment by the Assistant Commissioner. The net turnover calculation u/s Rule 15(2) allows deductions for specified amounts. Citing M/S. K.P. MOZIKA case, the Supreme Court clarified that providing vehicles for transport doesn't constitute transfer of right to use goods. Referring to STATE OF ANDHRA PRADESH case, it emphasized that contracts not involving transfer of right to use goods aren't subject to VAT. The Tribunal erred in treating transactions as deemed sale. Therefore, deduction for driver's salary, cleaner, and fuel costs is not applicable, as the transaction wasn't taxable. Revision was allowed.
The High Court considered the issue of deemed sale u/s 2(40) of the Uttarakhand Value Added Tax Act, 2005, upholding the assessment by the Assistant Commissioner. The net turnover calculation u/s Rule 15(2) allows deductions for specified amounts. Citing M/S. K.P. MOZIKA case, the Supreme Court clarified that providing vehicles for transport doesn't constitute transfer of right to use goods. Referring to STATE OF ANDHRA PRADESH case, it emphasized that contracts not involving transfer of right to use goods aren't subject to VAT. The Tribunal erred in treating transactions as deemed sale. Therefore, deduction for driver's salary, cleaner, and fuel costs is not applicable, as the transaction wasn't taxable. Revision was allowed.
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