CAclubindia

MJ Krishnamurthy's Expert Profile

Queries Replied : 1703

About me

I am a retired Assistant Commisioner of Commercial Taxes of Karnataka. I retired in 1998 at the age of 58.During this service I tried to go in detail about sales tax laws. Immeadiately after retirement some companies wanted to retain me as their consultant. That is how my touch with the subject of VAT laws continued.The website of CAclub india is giving a good opportunity to share my knowledge with others. I am an exserviceman from IAF. So, Iam a little different from other taxmen. We should do some service to the community that has offered us so much, That is my purpose.....Bye.

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prasad says : VAT on flat purchase
Thank you Mr. KrishnaMurthy for answering my earlier query. I have 2 more queries 1. If my agreement is after 1/04/2010 appliacble VAT rate is 1% in Maharashtra, is this correct? 2. Can I pay this VAT amount directly to government? 3. What information I should seek from builder to calculate applicable VAT?

prasad says : VAT on flat purchase
Thank you Mr. KrishnaMurthy for answering my earlier query. I have 2 more queries 1. If my agreement is after 1/04/2010 appliacble VAT rate is 1% in Maharashtra, is this correct? 2. Can I pay this VAT amount directly to government? 3. What information I should seek from builder to calculate applicable VAT?

Darshan C Jain says : Kar VAT Act 2003 order Under Sec 39(1) & (2)
i am Reg: Dealer Under Sec 15 COT Karnataka VAT Act, Foot wear Dealer, having turnover not exceeding Rs 20 lac PA, Recently VAT Officer i.e.. CTO visited and inspected Stocks and Asked us to file a Trading Account(TA) as on date of Inspection, the Same was prepared by our accountant and filed, Further the closing Stock as per TA was 635000, and Physical Stock were Worth Rs 840000, their Officer Proposes that v have made URD Purchase and should have paid the Input Tax On Purchase Made from URD, hence by suppressing the purchases have made offense Punishable, further v r asked to Pay Tax At Rate of 14.5% on stock in excess found and penalty in addition, but we have recorded all sale n Pur n have never skipped any entry. the profits may very on every such sale and on many purchase made under Discount Schemes from suppliers therefore the Profits margin was not confirmed to arrive at correct closing stocks. and if the stock were found less than Stock in TA the officer would propose suppression of sales Notice. any way tax payers shall be penalized on trap Account. Please state How to appeal and rescue from penalty and tax, what are the substantial Question of Law.

MJ Krishnamurthy says : KVAT WCT
Mr sachin, The industries or any enterprices located in any special economic zone are exempt from any vat. The suppliers or contractrs can not charge any VAT in their bills. These suppliers or contractors are eligible to get refund of input taxes paid on their purchases meant for SEZ firms. If you are mixing many types of contracts in your turnover then the rate will be 14.5%. You can go for composition of tax. The rate applicable will be 4% only. Let the public Ltd co pay the tax that you are liable for.With respect to SEZs sub-contractors also will be elible for exemption. A sub contractor is an independent dealer.His liabilities arise as per his options.mjk