https://www.taxtmi.com/caselaws?id=406921 Under the Karnataka Value Added Tax Act, tax liability is determined on net tax, meaning output tax less available input tax. Where a dealer purchases liquor from an exempt seller and no tax is paid on those purchases, no input tax arises in the dealer's hands, so the dealer cannot confine the levy to value addition alone or claim a deduction based on exempt purchases. The statutory scheme permits reduction of taxable turnover only where input tax exists and is deductible under the Act and rules. On that basis, the assessment sustaining tax on the full sales turnover was upheld. en-us Thu, 08 Apr 2021 00:00:00 +0530 Mon, 26 Apr 2021 10:27:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=406921 Under the Karnataka Value Added Tax Act, tax liability is determined on net tax, meaning output tax less available input tax. Where a dealer purchases liquor from an exempt seller and no tax is paid on those purchases, no input tax arises in the dealer's hands, so the dealer cannot confine the levy to value addition alone or claim a deduction based on exempt purchases. The statutory scheme permits reduction of taxable turnover only where input tax exists and is deductible under the Act and rules. On that basis, the assessment sustaining tax on the full sales turnover was upheld. Case-Laws VAT and Sales Tax Thu, 08 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=406921