9911796707
TMI Blog2021 (3) TMI 891X X X X Extracts X X X X X X X X Extracts X X X X ..... er had to be assessed at 10% - HELD THAT:- In terms of the circular dated 29.4.1993, if the local rate of tax is 3% and the company is a small company with inter-state sales turnover less than ₹ 10 lakhs, the additional sales tax is '0'. The Tribunal was of the view that the turnover could not be split up, which appears to be not correct in the light of the said circular, which makes it clear that the initial ₹ 10 lakhs turnover of the dealer could not be subjected to tax. Hence, we are of opinion that such benefit should accrue to the petitioner dealer. The orders passed by (i) the Assessing Officer; (ii) the First Appellate Authority and (iii) the Tribunal are set aside and the matter is remanded to the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tune of ₹ 46,65,038/- at 10%. 4. Though the petitioner claimed that they had to be taxed at 3.6%, the Assessing Officer, the First Appellate Authority and the Tribunal rejected the stand taken by the assessee on the ground that the local rate of tax on the goods dealt with by the petitioner was 3% and after adding surcharge and additional sales tax, the rate of tax would come to 5.1% and since this rate of tax was more than 4%, the turnover had to be assessed at 10%. 5. The argument before us, which appeared to have been not placed either before the Tribunal or before the First Appellate Authority or before the Assessing Officer is by referring to the amendment, which is brought to Section 2(1)(a) of the Tamil Nadu Additional S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total : 3.60 Only 3.6% will be charged. Additional sales tax component cannot be passed on. Example 2 : Basic rate is 3% but the company is a large one, whose inter-state sales turnover is 50 lakhs and therefore, after the initial 10 lakhs, the additional sales tax is 1.5%. Basic TNGST Rate : 3.00 Surcharge @ 15% : 0.45 Additional Surcharge @ 5% : 0.15 Additional sales tax : 1.50 Total : 5.10 Since 5.10 is higher than 4%, the central sales tax rate will be a flat 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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