https://www.taxtmi.com/caselaws?id=199404 Input tax apportionment under the Karnataka VAT scheme applies only where purchases are directly relatable to both taxable and exempt outputs. Section 11(a)(1) disallows input tax only when purchases are attributable to exempt goods, while Section 17 and Rule 131 require a direct basis of apportionment where input tax supports both streams. An incidental exempt by-product arising during manufacture of a taxable product, without any separate manufacturing activity for that by-product, does not by itself create the nexus needed to invoke Section 17. The effect is full input tax deduction where the exempt output is merely incidental. en-us Thu, 17 Jul 2014 00:00:00 +0530 Tue, 27 Feb 2018 20:20:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=199404 Input tax apportionment under the Karnataka VAT scheme applies only where purchases are directly relatable to both taxable and exempt outputs. Section 11(a)(1) disallows input tax only when purchases are attributable to exempt goods, while Section 17 and Rule 131 require a direct basis of apportionment where input tax supports both streams. An incidental exempt by-product arising during manufacture of a taxable product, without any separate manufacturing activity for that by-product, does not by itself create the nexus needed to invoke Section 17. The effect is full input tax deduction where the exempt output is merely incidental. Case-Laws VAT and Sales Tax Thu, 17 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=199404