Taxability of carbon credits: treated as intangible goods under VAT and subject to VAT at the prescribed rate. Certified Emission Reductions (CERs) are intangible instruments with innate market value, transferable and marketable, and therefore fall within the definition of 'goods' under the DVAT Act, 2004; transactions in CERs constitute 'sale' and persons trading them are 'dealers'. CERs are comparable to intangible items listed in Entry No. 3 of the Third Schedule and, applying judicial precedents on tradable licences and scrips, are taxable under the DVAT Act and subject to the VAT rate applicable to such intangible goods.
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.
Taxability of carbon credits: treated as intangible goods under VAT and subject to VAT at the prescribed rate.
Certified Emission Reductions (CERs) are intangible instruments with innate market value, transferable and marketable, and therefore fall within the definition of "goods" under the DVAT Act, 2004; transactions in CERs constitute "sale" and persons trading them are "dealers". CERs are comparable to intangible items listed in Entry No. 3 of the Third Schedule and, applying judicial precedents on tradable licences and scrips, are taxable under the DVAT Act and subject to the VAT rate applicable to such intangible goods.
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