Tag: KVAT

ArticlePre-GST

Supreme Court: Turnover of Sub-Contractor to be ducted from Main Contractor’s VAT Turnover for Avoidance of Double Taxation

byCA Bimal Jain

The Hon’ble Supreme Court in the case of Authority for Clarification and Advance Rulings, Gandhinagar, Karnataka & Anr. held that principal contractors, under Section 15 of the Karnataka VAT Act, 2003 for the period prior to March 1, 2006, are entitled to deduct amounts paid to registered sub-contractors from their total consideration for works contracts, when computing tax liability under the composition scheme, provided such sub-contractors have accounted for and paid tax on those amounts.

GST ArticleHigh Court

Prime Location Charges/Floor Rise Charges would not be included in Taxable Service under VAT

byCA Bimal Jain

The Hon’ble Karnataka High Court in the case  M/s. Smart Value Homes Private Limited vs. Joint Commissioner, Commercial Taxes (Appeals) and Others allowed the revision petition and held that the Prime Location Charges (“PLC”)/ Floor Rise Charges (“FRC”) would not fall within the definition of works contract under the KVAT Act and such charges incurred by the buyer would fall within the purview of Service Tax.