Sale or service - Information Technology Service - Canned ...

Petitioner in IT services failed to seek proper tax guidance under Tamil Nadu VAT Act 2006, risking compliance issues.

March 5, 2021

Case Laws     VAT and Sales Tax     HC

Sale or service - Information Technology Service - Canned software - the petitioner should have obtained a clarification from the Commercial Tax Department before taking a drastic step to stop paying tax under the provisions of the Tamil Nadu VAT Act, 2006 instead of obtaining a opinion only from the Assistant Commissioner of Excise. - The petitioner appears to have risked to avoid VAT. Therefore, if tax was due, it has to pay such tax to the Commercial Tax Department. - The petitioner has to independently satisfy the respondent, that the transaction in questions were outside the purview of TN VAT Act 2006 by producing agreements and invoices. - HC

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