Purchase Tax in Madhya Pradesh VAT Act

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..... Purchase Tax in Madhya Pradesh VAT Act
Query (Issue) Started By: - SUNIL JAIN Dated:- 23-6-2015 Last Reply Date:- 5-7-2015 VAT + CST
Got 1 Reply
VAT / Sales Tax
Whether Purchase liable for Purchase tax if goods purchased deemed tax paid in the hands of Seller Levy of Sale Tax u/s 9 on cotton specified in Schedule II (Entry no 27) @ 5% and such tax shall be levied on t .....

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..... he taxable turnover of a selling dealer. Cotton is notified goods, (Noti. No. 19 dt. 3/8/09) procured for subsequently sale or consumption by purchasing dealer. Purchasing dealer issue TDS certificate u/s 26-A(1) to selling dealer after deducting VAT charged by selling dealer on invoice to discharge Sales Tax Liability of selling Registered Dealer. The turnover of sale of goods deemed Tax paid R .....

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..... ule 45-A(9) on producing TDS certificate received from purchasing dealer at the time of assessment of selling registered dealer. U/s 10 Every dealer who in the course of his business purchases any goods from a registered dealer in the circumstance in which no tax under section 9 is payable by the selling registered dealer on the sale price of such goods. Reply By Rama Krishana: The Reply: As I .....

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..... tried to understand the provisions of Madhya Pradesh VAT Act as enumerated in the query, I am of the opinion that nothing is required to be read in isolation. Sales tax which is required to be paid by the selling dealer is required to be paid by the purchasing dealer by way of TDS. Once the purchasing dealer deduct TDS and make the payment to the government as per the Section 26-A(1) read with Ru .....

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..... le 45A-9, selling dealer is free from its tax liability. As long as the question of purchase tax is concerned in my view the provisions of Section 9 read with Section 10 are clear and I find no ambiguity therein. The goods are tax paid, either directory or indirectly and hence, no separate purchase tax would be levied purchase of such goods where TDS has been deducted and paid.
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