Sales Tax Set-off

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2010 Sales Tax collected at the prescribed rate of 12.50 % but paid only after deducting sales tax set-off available on purchases as per Maharashtra Vat Rules and showing it in the books of accounts as "Other Receipts".

My Question is -

1. Is it a case of Additional consideration in terms of the Excise Valuation Rules ?

2. Is Excise duty payable on the amounts showing as "Other Receipts" in the books of accounts.

Please explain / clerify with case law .

Thanks and Regards

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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24 August 2010 The amount of net sales tax collected credited to the "Other receipts" account would not form the part of the additional consideration. Excise duty is charged is the duty charged on the Assessable value excluding sales Tax / Vat.

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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24 August 2010 If exclusive method of accounting had been adopted in respect of Modvat there would not have been any amount credited to P & L A/c

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