Dealer Deposit -Taxable

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..... 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 taken 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 pu .....

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..... rchaser 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 terminates 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 sa .....

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..... ve 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 narrated 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 / deal .....

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..... er. 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. - Dealer Deposit -Taxable - Query Started By: - Tej Anand Dated:- 25-11-2011 Value Added Tax - VAT-CST - Got 1 Reply - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opin .....

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..... ion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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