1974 (5) TMI 97

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...., the rejection of the applicant's claim for deducting the sums of Rs. 27,235 and Rs. 46,070 from the gross turnovers of the respective years 1963-64 and 1964-65 on account of sales tax to compute the taxable turnover under section 7 of the Bihar Sales Tax Act, 1959, is legal and valid?" 3.. The dealer returned gross turnovers of Rs. 9,59,812 and Rs. 15,66,411 for the periods 1963-64 and 1964-65. The assessing officer found that the dealer had deducted Rs. 27,235 and Rs. 46,070 during the two years in question on account of sales tax realised from the customers though the cash memos and bills did not indicate that such amounts towards sales tax had been realised from the customers in addition to the sale price of the goods. The dealer to....

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....the bills and that, under section 7(2)(a)(ii), the amount of sales tax should have been deducted for working out the taxable turnover for assessing the special sales tax. The Tribunal held that only the sales tax which had been collected in addition to the sale price of the goods can be deducted from the gross turnover under section 7 for working out the taxable turnover of the dealer. It further took the view that the dealer is not entitled to deduct certain amount on account of sales tax even though he may not have collected any tax as such in addition to the sale price received or receivable by him. Accordingly, the Tribunal rejected the claim of the dealer for deduction of the two amounts, namely, Rs. 27,235 and Rs. 46,070 from the gros....

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....s the value of the goods and the amount paid for recouping the dealer for payment of tax. The Act enables the dealer to pass on the liability of sales tax to the purchaser and if by invoice or otherwise the dealer charges in respect of the goods sold by him the value of the goods and the tax which he may have to pay on the value, sales tax will be computed on the value of the goods and not on the total amount paid by the purchaser. The amount payable by the purchaser is, however, the consideration paid by him for purchasing the goods. The dealer may apportion the value of the goods and the sales tax payable by him on the sales to the State. If he does so, he is liable to pay sales tax only on the value and not on the amount of tax collected....