https://www.taxtmi.com/caselaws?id=8313 Sales tax realised from purchasers was treated as part of the sale price and therefore as a trading receipt includible in total income, because its character was determined at the point of receipt in the course of trading and was not altered by any later liability to pay or refund it. Under the cash basis of accounting, deduction was available only on actual payment, so the collected sales tax was not deductible in the relevant accounting year where no payment to the State had been made. The stated legal position thus favoured taxation of the receipt and denied deduction until payment occurred. en-us Wed, 25 Aug 1971 00:00:00 +0530 Thu, 09 Apr 2009 17:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8313 Sales tax realised from purchasers was treated as part of the sale price and therefore as a trading receipt includible in total income, because its character was determined at the point of receipt in the course of trading and was not altered by any later liability to pay or refund it. Under the cash basis of accounting, deduction was available only on actual payment, so the collected sales tax was not deductible in the relevant accounting year where no payment to the State had been made. The stated legal position thus favoured taxation of the receipt and denied deduction until payment occurred. Case-Laws Income Tax Wed, 25 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8313