VAT ITC Allowed Beyond Invoice Month Due to Practical Accounting Constraints: Karnataka HC

Sonal Apparel Private Limited Vs State of Karnataka (Karnataka High Court) The petitions challenged the vires and interpretation of Section 10(3) of the Karnataka Value Added Tax Act, 2003 (KVAT Act), contending that the Assessing Authorities had interpreted the provision in a manner inconsistent with the object and scheme of the Act. The KVAT Act was introduced to address the cascading effect of taxation under the earlier Karnataka Sales Tax Act, 1957, by allowing set-off of input tax against output tax so that tax is levied only on value addition. Under this scheme, the net tax payable by a ...