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Case Law Details

Case Name : PSN Automobiles Private Limited Vs. UOI & CBIC (Kerala High Court at Ernakulam)
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PSN Automobiles Private Limited Vs. UOI & CBIC (Kerala High Court at Ernakulam)

Petitioner, has submitted that the amount of 1% the dealer collects from the purchaser of a car worth more than ten lakhs, under Section 206C(1F) of the Income Tax Act, cannot be treated as an integral part of the value of the goods and services supplied by the petitioner. According to him, the petitioner, as the dealer of the motor vehicle, acts only as an agent for the State to collect the income tax under Section 206C(1F)

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6 Comments

  1. CA sunil gaur says:

    It’s a deeper legal issue. Logically TCS should be excluded from value of services as it is not being charged from customer for goods but because of a requirement of law it is being collected and deposited in the income tax account of customer. So it should be excluded. Gst act should be amended or be interpreted this way

  2. Madhusudan says:

    It is the Income Tax Department which is using the services of the dealer to collect tax on its behalf.Why shouldn’t the IT dept pay the Service Tax onunder GST.

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