TaxTMI 
TaxTMI 
Dealer Deposit -Taxable
X X X X Extracts X X X X
X X X X Extracts X X X X
....ealer Deposit -Taxable<br> Query (Issue) Started By: - Tej Anand Dated:- 25-11-2011 Last Reply Date:- 12-4-2013 VAT + CST<br>Got 1 Reply<br>VAT / Sales Tax<br>Good Morning , ABC company is a whole sale company and has dealers all over in India . It takes Rs.1 lac as dealer deposit ( Security ) from its new dealers appointed . As per Maharashtra Act assessing officer says that dealer deposit tak....
X X X X Extracts X X X X
X X X X Extracts X X X X
....en from Maharshtra dealers should be taxable as per sales tax . From Sales Tax MAHAVAT site it says : Purchase Price shall include the amount paid by the purchaser by way of deposit whether refundable or not which has been paid whether by way of a seperate agreement or not , in connection with or incidental or ancillary to the said purchase of goods We also return the dealer deposit once the ter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....minates the dealership . So the dealer deposit in short is refund once the bussiness is terminated Please help me to give your kind views and how can I save this tax since we have quite large amount of dealer deposit from Maharashtra . Thanks & Best Regards Tej Anand Reply By CA. Surender Gupta: The Reply: Though your views and experience are welcome, in my understanding of the facts as narra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted in the query, the security deposit in your case in not related to any sale of goods but it is related to appointment of franchise / dealer. In this department must fail to prove that this security is related to [ incidental or ancillary] to the said purchase of goods. The term "said" is of much significant.<br> Discussion Forum - Knowledge Sharing ....