https://www.taxtmi.com/caselaws?id=302459 Post-sale discounts through credit notes do not justify automatic reversal of input tax credit under the Kerala Value Added Tax Act, 2003. The assessing authority must first determine whether the discount forms part of the sale consideration and whether any restriction on credit is warranted under Section 11; mere receipt of a discount by the purchaser is insufficient. Discount amounts may be added to turnover only if they are proved to be balance sale price under Explanation VII to Section 2(iii). Assessment orders that ignored this statutory scheme and the relevant factual inquiry were held unsustainable and quashed, with the matter remitted for fresh assessment after hearing the dealers. en-us Wed, 02 Dec 2015 00:00:00 +0530 Sat, 28 May 2022 09:35:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302459 Post-sale discounts through credit notes do not justify automatic reversal of input tax credit under the Kerala Value Added Tax Act, 2003. The assessing authority must first determine whether the discount forms part of the sale consideration and whether any restriction on credit is warranted under Section 11; mere receipt of a discount by the purchaser is insufficient. Discount amounts may be added to turnover only if they are proved to be balance sale price under Explanation VII to Section 2(iii). Assessment orders that ignored this statutory scheme and the relevant factual inquiry were held unsustainable and quashed, with the matter remitted for fresh assessment after hearing the dealers. Case-Laws VAT and Sales Tax Wed, 02 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302459