Additional Consideration
Sanjay Sharma (Astt. Manager-Indirect Taxation) (76 Points)
10 June 2008Sanjay Sharma (Astt. Manager-Indirect Taxation) (76 Points)
10 June 2008
Shyam Lal Naik
(Service)
(6156 Points)
Replied 10 June 2008
The additional tax collected(albeit erronously) should be deposited with the sales tax authorities. Indirect taxes are collected on behalf of the Govt. It is not a revenue of the seller(other receipt).
Since the consideration legally does not belong to the seller, it can not be considered as additional consideration for excise valuation.
Sanjay Sharma
(Astt. Manager-Indirect Taxation)
(76 Points)
Replied 10 June 2008
Shyam Lal Naik
(Service)
(6156 Points)
Replied 10 June 2008
Dear Mr. Sharma,
I am not expert in Sales Tax Matter. How ever it appears to me that :-
1. This is not a correct practice. You are misrepresenting to customers that 4% is govt. levy.
3. Certainly punishable under CST.
Can not comment on Q2 & Q4.
There is a provision under Service Tax that realisation representing service tax erronously collected should forthwith be remitted to Govt's credit. The ratio should apply to instant case.
Lets look for more opinion.
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