Sales Tax

Karnataka extends Due dates of Professional Tax, VAT, KTEG & Sales tax

Goods and Services Tax - Karnataka – Extension of Due dates for matters concerning Professional Tax, VAT, KTEG and Sales tax Due to the Pandemic Covid-19 outbreak and subsequent lockdown nationwide causing difficulties to various taxpayers adhering to the provisions of tax laws.  The Karnataka Government extends certain due dates concerning payment of taxe...

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E-Payment of Maharashtra Value Added Tax (MVAT) – FAQs

Goods and Services Tax - Which category of the dealers are required to make e-payment compulsorily for VAT, CST & PTRC? Is it mandatory to pay sales tax online?...

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Sale in course of import for Leasing Transactions: CST

Goods and Services Tax - In a recently pronounced judgment in the case of Hewlett Packard Financial Services vs The State of Karnataka, The Deputy Commissioner of Commercial Taxes (Audit) (‘Revenue’), the Karnataka High Court dealt with the issue relating to entitlement of VAT exemption by virtue of Section 5(2) of the Central Sales Tax Act, 1956 (‘CST Act...

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FAQs on MVAT Audit Report in Form 704

Goods and Services Tax - What is Audit Report in Form 704? Ans : It is a report under section 61 of MVAT ACT, 2002 to be submitted by eligible dealer within 10 months of the end of a particular financial year....

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Penultimate Export Sale and Tax Exemption under CST ACT, 1956

Goods and Services Tax - The Central Government’s policy is, when exports are made, only products or services are to be exported and not taxes. Therefore when tax exemption is available for direct export for the exporters, the sale prior to export i.e Penultimate sale also is considered for tax exemption by the Government. ...

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Sales tax evasion racket in Mumbai used hawala bills to save tax on transactions worth Rs 700 crore

Goods and Services Tax - A tax evasion racket involving over 400 firms, most of which are based in the city, has come to light. The state sales tax department, which busted the racket, claimed that its initial assessment showed that the racket involved transactions worth Rs ...

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SC to HAL and Karnataka govt – Resolve Rs 1,519 Cr. Sales tax dispute

Goods and Services Tax - The Supreme Court today directed the Defence Ministry and the Karnataka government to meet and resolve their dispute over Rs 1,519 crore sales tax on defence contracts executed by Hindustan Aeronautics Ltd (HAL)....

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28 establishments under scanner to detect evasion of sales and value-added tax

Goods and Services Tax - UT vigilance department recently put 28 establishments under scanner to detect evasion of sales and value-added tax. This was accompanied by attempts at catching income tax evaders among multinational companies. The establishments being looked at in ...

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PIL alleges Sales Tax scam of over Rs 100 crore

Goods and Services Tax - The Bombay High Court has asked Maharashtra government's Principal Secretary (Finance) to file an affidavit by October 8 in reply to a PIL alleging scam in refund of Sales Tax to the tune of crores of rupees in Palghar division in nearby Thane distri...

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SC to decide soon on levy of sales tax on incidental charges like transportation, packaging, labour etc.

Goods and Services Tax - The Supreme Court will soon decide whether sales tax is to be levied on the incidental charges like transportation, packaging and labour incurred by Food Corporation of India (FCI) on purchase of foodgrains for the state machinery including contingen...

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HC Allows Issuance of ‘C’ Forms against purchase of High Speed Diesel from Suppliers in Other States

Venkatramanaswamy Blue Metals Vs. Assistant Commissioner (Madras High Court) - Difficulty in obtaining 'C' forms under the provisions of the Central Sales Tax Act, 1956 in order to avail concessional benefit of tax for purchase of High Speed Diesel from suppliers in other states....

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Penalty of twice the tax amount for mere delay in Entry Tax payment was unjustified

National Asphalt Products and Construction Company Vs State of Tamil Nadu (Madras High Court) - National Asphalt Products and Construction Company Vs State of Tamil Nadu (Madras High Court) The issue under consideration is whether sales tax officer is justified in levying penalty at twice the amount of entry tax? High Court states that, under the Act penalty may be imposed for failure to regis...

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Onus on revenue to prove that CA Certificate is False Statement

Tvl. Madura Coasts (P) Ltd. Vs Commissioner of Commercial Taxes (Madras High Court) - whether Sales Return transactions which are erroneously shown it in sales tax return as sales can be rectified eventually after submission of CA certificate alongwith the concern Invoice memos?...

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KGST- Assessment cannot be reopened after 14 years unless fresh receipt of materials for tax evasion

K. Sasilal Vs Fast Track Assessment Team No. 2 (Kerala High Court) - Hence, the High Court of Kerala quashed the reassessment proceedings under section 17D of the Kerala General Sales Tax Act (KGST), 1961 since the provision does not prescribe any time limit and no additional material to undertake the fast track assessment was presented by the department....

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Sales tax applies on Divisible Contract if predominant intention was Sale of Equipment

M/s. Bharat Heavy Electricals Ltd. Vs. The State of Maharashtra (Bombay High Court) - M/s. Bharat Heavy Electricals Ltd. Vs. State of Maharashtra (Bombay High Court) It is evident that in the facts of the present case the contract was clearly one for supply and erection of equipment, supply of equipment being dominant purpose. No doubt the State of Maharashtra had enacted the Maharas...

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Procedure for Combined new Registration under MVAT, CST and PT Act

Trade Circular No 4 T of 2015 - (09/03/2015) - The dealers/persons/employers, hereinafter referred to as the applicants, desirous of seeking registrations under the Maharashtra Value Added Tax Act (MVAT), Central Sales Tax Act (CST) and the Profession Tax Act (PT) need to make online applications under the relevant Act. These applications are re...

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Trade circular No. 4T of 2010 on Filing of Audit Report in Form-704 for the periods 2005-06, 2006-07 and 2007-08

Trade Circular No. 4 T of 2010 - (18/01/2010) - As per Section 61 of MVAT Act, 2002 it is mandatory for all eligible dealers to get their books of accounts audited. As per trade circular No. 27 T of 2009 Dated 01.10.2009, any dealer who files Audit Report in Form 704 on or after 1" Oct.2009 for any period shall file the same electronically in the...

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MVAT circular on Issuing of Tax Clearance Certificates

Trade Circular No. 1 T of 2010 - (05/01/2010) - In view of this situation, it is necessary that the procedure for the issuing of such certificates should be standardized. Such certificates are very often required to be produced before various government authorities, local bodies or other bodies etc. for the purpose of tender renewal of licenses e...

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MVAT Notification on Delegation of Powers

Notification No. DC (A&R) PWRJJC/2009/6(2)/ADM-6 - (02/01/2010) - In exercise of the powers conferred by sub-section (5) of section 10 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Commissioner of Sales Tax, Maharashtra State, Mumbai, hereby amends the notification No. Sr. D. C. (A & R)/PWR/1006/2/Adm-3, dated 6th October 2007 as follows, nam...

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MVAT circular on activity code to be mentioned in audit report form 704

Trade Circular No. 38 T of 2009 - (31/12/2009) - Activity Codes are numerical codes that are used to define the activities of an economic unit. These codes are developed by National Industrial Classification (NIC) 2008. It is a standardized system of classification of economic activities essential for meaningful collection of data relating to such...

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Recent Posts in "Sales Tax"

HC Allows Issuance of ‘C’ Forms against purchase of High Speed Diesel from Suppliers in Other States

Venkatramanaswamy Blue Metals Vs. Assistant Commissioner (Madras High Court)

Difficulty in obtaining 'C' forms under the provisions of the Central Sales Tax Act, 1956 in order to avail concessional benefit of tax for purchase of High Speed Diesel from suppliers in other states....

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Penalty of twice the tax amount for mere delay in Entry Tax payment was unjustified

National Asphalt Products and Construction Company Vs State of Tamil Nadu (Madras High Court)

National Asphalt Products and Construction Company Vs State of Tamil Nadu (Madras High Court) The issue under consideration is whether sales tax officer is justified in levying penalty at twice the amount of entry tax? High Court states that, under the Act penalty may be imposed for failure to register as a dealer Section 9(1) […]...

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Onus on revenue to prove that CA Certificate is False Statement

Tvl. Madura Coasts (P) Ltd. Vs Commissioner of Commercial Taxes (Madras High Court)

whether Sales Return transactions which are erroneously shown it in sales tax return as sales can be rectified eventually after submission of CA certificate alongwith the concern Invoice memos?...

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KGST- Assessment cannot be reopened after 14 years unless fresh receipt of materials for tax evasion

K. Sasilal Vs Fast Track Assessment Team No. 2 (Kerala High Court)

Hence, the High Court of Kerala quashed the reassessment proceedings under section 17D of the Kerala General Sales Tax Act (KGST), 1961 since the provision does not prescribe any time limit and no additional material to undertake the fast track assessment was presented by the department....

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Karnataka extends Due dates of Professional Tax, VAT, KTEG & Sales tax

Karnataka – Extension of Due dates for matters concerning Professional Tax, VAT, KTEG and Sales tax Due to the Pandemic Covid-19 outbreak and subsequent lockdown nationwide causing difficulties to various taxpayers adhering to the provisions of tax laws.  The Karnataka Government extends certain due dates concerning payment of taxe...

Read More

Sales tax applies on Divisible Contract if predominant intention was Sale of Equipment

M/s. Bharat Heavy Electricals Ltd. Vs. The State of Maharashtra (Bombay High Court)

M/s. Bharat Heavy Electricals Ltd. Vs. State of Maharashtra (Bombay High Court) It is evident that in the facts of the present case the contract was clearly one for supply and erection of equipment, supply of equipment being dominant purpose. No doubt the State of Maharashtra had enacted the Maharashtra Sales Tax on “Transfer” of [&he...

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Port Trust is a dealer liable to sales tax under Bombay Sales Tax Act 1954: HC

The Board of Trustees of the Port of Bombay Vs. The State of Maharashtra (Bombay High Court)

judgment of the Supreme Court in Cochin Port Trust holds the field. We are accordingly of the view that the Port Trust falls within the definition of dealer and is liable to sales tax under the Bombay Sales Tax Act 1954....

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Bombay HC on inclusion of insurance and carrying charges in ‘Sale Price’

The Commissioner of Sales Tax Vs. M/s. Ravi Trading Company (Bombay High Court)

A division bench of the Bombay High Court, on Monday, held that insurance charges and carrying charges do not form part of the sale price under section 2(29) of the Bombay Sales Tax Act, 1959. A bench comprising Justices R.K Deshpande and Manish Pitale was hearing a departmental appeal against the order of the Maharashtra Sales Tax Tribun...

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E-Payment of Maharashtra Value Added Tax (MVAT) – FAQs

Which category of the dealers are required to make e-payment compulsorily for VAT, CST & PTRC? Is it mandatory to pay sales tax online?...

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Sale in course of import for Leasing Transactions: CST

In a recently pronounced judgment in the case of Hewlett Packard Financial Services vs The State of Karnataka, The Deputy Commissioner of Commercial Taxes (Audit) (‘Revenue’), the Karnataka High Court dealt with the issue relating to entitlement of VAT exemption by virtue of Section 5(2) of the Central Sales Tax Act, 1956 (‘CST Act...

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FAQs on MVAT Audit Report in Form 704

What is Audit Report in Form 704? Ans : It is a report under section 61 of MVAT ACT, 2002 to be submitted by eligible dealer within 10 months of the end of a particular financial year....

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Penultimate Export Sale and Tax Exemption under CST ACT, 1956

The Central Government’s policy is, when exports are made, only products or services are to be exported and not taxes. Therefore when tax exemption is available for direct export for the exporters, the sale prior to export i.e Penultimate sale also is considered for tax exemption by the Government. ...

Read More

Procedure for Combined new Registration under MVAT, CST and PT Act

Trade Circular No 4 T of 2015 (09/03/2015)

The dealers/persons/employers, hereinafter referred to as the applicants, desirous of seeking registrations under the Maharashtra Value Added Tax Act (MVAT), Central Sales Tax Act (CST) and the Profession Tax Act (PT) need to make online applications under the relevant Act. These applications are required to be made separately. After succ...

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Sales Tax C, E & F Forms Demystified

There are certain type of forms which has been prescribed under central sales tax rules 1957, form C for making interstate purchase at lower rate, form F used to transfer goods from one branch to other in different state without making it as sale form E1 and E2 used when interstate sale or purchase which are effected by mere transfer of d...

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Form H – Effect on penultimate sales – CST Act, 1956

SALE OR PURCHASE AGAINST H- FORM: CST ACT 1956 EFFECT ON PENULTIMATE SALES: FEEL THE GIST Restriction by Constitution of India & CST Act 1956 on imposition of Tax  on sale of goods in course of import or Export: Tax by State Governments on sales or purchase of goods made during the course of import […]...

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Forms & Procedures under Central Sales Tax (CST)

Every dealer who effects inter-state sale is required to register with State sales tax authorities who are empowered to grant registration under CST Act. Application should be in form ‘A’. Security has to be furnished. Certificate of registration will be in form ‘B’....

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E- I Transaction – Process Note and Documentation

Transit Sales under the CST Act . These are generally known in the market as ‘LR sales’, ‘subsequent inter-State sales’ and ‘E-I sales’. These transactions fall under clause (b) of section 3 of the Central Act, which reads as follows: 3. When is a sale or purchase of goods said to take place in the course of inter-State trade ...

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C Form Cannot Be Refused To be Issued On Arrears of Tax

Sri Rajeswari Agencies Vs. Additional Deputy Commercial Tax Officer II (Madras High Court)

Sri Rajeswari Agencies V. Additional Deputy Commercial Tax Officer II, Sales Tax – Declaration Forms – Arrears Of Tax - C Form Cannot Be Refused To Be Issued On Ground Of Arrears Of Tax – Central Sales Tax Act (74 Of 1956), S. 9(2) – Central Sales Tax (Registration And Turnover) Rules, 1957, Form C....

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Prepayment of sales tax deferral loan on payment of net present value of future liability cannot be classified as remission

Sulzer India Ltd. Vs. Jt. CIT (ITAT Mumbai)

In a recent ruling, in the case of Sulzer India Ltd. v. Jt. CIT [2010-TIOL-670-ITAT-MUM-SB] , the Special Bench of the Mumbai Income-tax Appellate Tribunal (the "Tribunal") held that prepayment of deferred sales tax liability on the Net Present Value...

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Sales tax evasion racket in Mumbai used hawala bills to save tax on transactions worth Rs 700 crore

A tax evasion racket involving over 400 firms, most of which are based in the city, has come to light. The state sales tax department, which busted the racket, claimed that its initial assessment showed that the racket involved transactions worth Rs ...

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SC to HAL and Karnataka govt – Resolve Rs 1,519 Cr. Sales tax dispute

The Supreme Court today directed the Defence Ministry and the Karnataka government to meet and resolve their dispute over Rs 1,519 crore sales tax on defence contracts executed by Hindustan Aeronautics Ltd (HAL)....

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28 establishments under scanner to detect evasion of sales and value-added tax

UT vigilance department recently put 28 establishments under scanner to detect evasion of sales and value-added tax. This was accompanied by attempts at catching income tax evaders among multinational companies. The establishments being looked at in ...

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Corruption on high, nothing moves without money- Supreme Court

Stating that “nothing moves without money”, the Supreme Court has expressed concern over the growing corruption in government machinery, particularly in the Income Tax, Sales Tax and Excise departments. ...

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PIL alleges Sales Tax scam of over Rs 100 crore

The Bombay High Court has asked Maharashtra government's Principal Secretary (Finance) to file an affidavit by October 8 in reply to a PIL alleging scam in refund of Sales Tax to the tune of crores of rupees in Palghar division in nearby Thane distri...

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SC to decide soon on levy of sales tax on incidental charges like transportation, packaging, labour etc.

The Supreme Court will soon decide whether sales tax is to be levied on the incidental charges like transportation, packaging and labour incurred by Food Corporation of India (FCI) on purchase of foodgrains for the state machinery including contingen...

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Fake income tax commissioner held for extortion

The crime branch of Delhi Police has arrested a 24-year-old man who allegedly posed as an income tax commissioner and demanded Rs 30 lakh from a businessman in return of closing a fictitious complaint against the victim. The accused, Dinesh Kumar, was arrested last Friday from the Millennium Park area in southeast Delhi....

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Even if it is assumed that the assessee was authorized to collect sales tax and retain with it, the same will be chargeable to tax as trading receipt

LG Electronics India Pvt. Ltd. Vs. Addl. (ITAT Delhi)

Even if it is assumed that the assessee was authorized to collect sales tax and retain with it, the same will be chargeable to tax as trading receipt in view of decision of Supreme Court in the case of Sahney Steel and Press Works Ltd. v. CIT [228 ITR 253 (SC)]....

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Maharashtra imposes 1% Sales Tax on property sale agreements

Property buyers in Mumbai and the rest of Maharashtra will now have to spend more, as the state government has issued a notification on the imposition of 1 per cent value added tax (VAT) on the contract price of flats mentioned in the agreement of sale registered on or after April 1. This would be in addition to a 5 per cent stamp duty, 2...

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Three deputy sales tax commissioners suspended for involvement in sales Tax refund fraud

Mumbai:-Three senior sales tax officers have been suspended for their alleged involvement in a Rs 50-crore scam. The three officers are deputy commissioners Lalitkumar Chavardol and Sadashiv Kulkarni and assistant commissioner Chandrakant Guthe. The suspension orders were signed by finance minister Sunil Tatkare on Monday. Incidentally,...

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Date for MVAT audit in form 704 in Maharashtra extended?

On 22/01/10 the Hon. Finance Minister Mr. Sunil Tatkare has announced at the time of bhoomipujan ceremony of proposed building of sales tax office of Ratnagiri that MVAT Audit date is extended by 2 months. This announcement was made in the presence of Hon. Sales Tax Commissioner Mr. Sanjay Bhatia, but there is no official communication ye...

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Trade circular No. 4T of 2010 on Filing of Audit Report in Form-704 for the periods 2005-06, 2006-07 and 2007-08

Trade Circular No. 4 T of 2010 (18/01/2010)

As per Section 61 of MVAT Act, 2002 it is mandatory for all eligible dealers to get their books of accounts audited. As per trade circular No. 27 T of 2009 Dated 01.10.2009, any dealer who files Audit Report in Form 704 on or after 1" Oct.2009 for any period shall file the same electronically in the new Form-704....

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Indian Inc requested early implementation of Goods and service Tax

India Inc on Tuesday asked Finance Minister Pranab Mukherjee to introduce Goods and Services Tax "as early as possible", amid speculations that the indirect tax reform may not be implemented from the scheduled date of April 1. "We want that the GST deadline should not be missed," Ficci president Harsh Pati Singhania told reporters after ...

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MVAT circular on Issuing of Tax Clearance Certificates

Trade Circular No. 1 T of 2010 (05/01/2010)

In view of this situation, it is necessary that the procedure for the issuing of such certificates should be standardized. Such certificates are very often required to be produced before various government authorities, local bodies or other bodies etc. for the purpose of tender renewal of licenses etc....

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Validity of agreement for assignment of liabilities and assets by an assessee

MIRC Electronics Ltd. Vs DCIT (ITAT Mumbai)

However, in view of the fact that the agreement has been accepted as genuine in the hands of one of the parties and economic consequences have also occurred because the assignee has made the payment to the Government, the transaction is necessarily be treated as genuine one, and for this reason, ...

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MVAT Notification on Delegation of Powers

Notification No. DC (A&R) PWRJJC/2009/6(2)/ADM-6 (02/01/2010)

In exercise of the powers conferred by sub-section (5) of section 10 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Commissioner of Sales Tax, Maharashtra State, Mumbai, hereby amends the notification No. Sr. D. C. (A & R)/PWR/1006/2/Adm-3, dated 6th October 2007 as follows, namely:—...

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MVAT circular on activity code to be mentioned in audit report form 704

Trade Circular No. 38 T of 2009 (31/12/2009)

Activity Codes are numerical codes that are used to define the activities of an economic unit. These codes are developed by National Industrial Classification (NIC) 2008. It is a standardized system of classification of economic activities essential for meaningful collection of data relating to such activities. This classification does no...

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Amendment to the Maharashtra Value Added Tax Rules, 2005

Trade Circular No. 37 T of 2009 (30/12/2009)

The sub-rule (1) provides the different forms of returns to be filed by various categories of dealers. Earlier, the dealers. used to submit these forms of return-cum-chalan physically either to the Bank alongwith payment of tax, interest etc., if any or to the Sales Tax Department where tax liability was NIL. These forms of the return wer...

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Know Your Customer (KYC) Guidelines – Accounts of Proprietary Concern

RBI/2009-10/271, UBD.BPD.CO.NSBI/ 38 /12.03.000/2009- 10 (23/12/2009)

In partial modification of paragraph 3 (ii) thereof, it is advised that apart from the documents mentioned therein, any certificate / registration document issued by Sales Tax / Service Tax / Professional Tax authorities may also be considered for verification of the proof of name, address and activity of the Proprietary concern....

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Goods and Service Tax (GST) from taxman's point of view

GST is just a VAT :-GST as you are aware is just value added tax (VAT) because when made a presentation to the chief minister this was an issue which I was asked - In three years you have somehow setup VAT and now you are talking about GST. I told them GST is VAT but two major more taxes are coming in but every other operation is like VAT...

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Sales Tax Has Precedence Over Bank Mortgage

M/s Orissa State Financial Corporation Vs Commnr. of Commericial Taxes & Ors (Supreme Court of India)

Despite valiant attempt on the part of learned counsel for the appellant to convince us that in view of some observations in Dena Bank Vs. Bhikhabhai Prabhudas Parekh & Co. & Ors., 2000(5) SCC 694, the issue raised in the present appeal requires consideration, in our judgment the issue is no more res integra. In State Bank of Bikaner & Ja...

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Real Estate Transactions and Important VAT provisions

Typically in real estate transactions, the land holder contributes the land, the developer constructs the building and sells the flats along with the proportionate rights in respect to the land. As a result, each owner becomes the owner of an apartment with corresponding undivided share in the land arid an undivided share in the common ar...

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Can sales tax department recover sales tax from buyer of Plant and Land of sick unit?

Question. The dealer has purchased plant along with land from Financial Institution in auction. The original owner of plant was declared sick unit and was liable to discharge sales tax dues for past years. The Sales Tax Department is contemplating to recover the said dues from the dealer who has purchased the plant and land in auction. Wh...

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Procedure- Issue of H form when dealer is registered in more then one state

The facts are that the dealer is registered under CST Act in Andhra Pradesh as well as in Maharashtra. Order is placed by AP branch on Tamil Nadu dealer for supply of goods against H form. The supplier prepares invoice mentioning Maharashtra address. The goods are delivered by TN party in AP from where dealer exports the goods. The dealer...

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Issues arising out of & Implications of A & G Projects Judgment – The way out

Under entry 92A of List I of the VII Schedule to the Constitution of India, the Parliament of India has the exclusive right to impose tax on sale or purchase of goods other than newspapers where such sale or purchase takes place in the course of inter-State trade and commerce. Article 269 of the Constitution of India authorises the Parlia...

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Critical Analysis of Inter-State Works Contract

After amendment to the constitution by inserting Article 366(29A) providing definition of the term “taxes on sale or purchase of goods” to include deemed sales, States were empowered to levy tax on sale or purchase of goods involved in execution of works contracts. However, the power of States to levy tax on deemed sales including wor...

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Sales in transit meaning, procedure, case Laws & Provisions

Q.1 Please explain the scheme of “in transit sale” covered by section 6(2) of CST Act, 1956? Ans.: Section 3(a) of CST Act,1956 defines the interstate sale/purchase transaction. Section 3(b) defines the interstate sale effected by transfer of documents of title to goods. When the goods are in movement from one State to other. The whol...

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Conversion of marble blocks into polished slabs and tiles constitutes ‘manufacture’ or ‘production’ u/s 80-IA

Income Tax Officer, Udaipur Vs M/s Arihant Tiles & Marbles (P) Ltd. (Supreme Court of India)

The test for determining whether “manufacture” can be said to have taken place is whether the commodity, which is subjected to a process can no longer be regarded as the original commodity but is recognized in trade as a new and distinct commodity; the word “production”, ...

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Assocham demanded uniform VAT structure of 8 percent for Petrol & Diesel

The government should bring petrol and diesel under a uniform VAT structure of 8 per cent as the variation in state tax was putting additional burden of taxation, industry body Assocham today said. States sales tax on petrol varies from 33 per cent in Andhra Pradesh to 18.9 per cent in Manipur and on diesel from 34 per cent in Mumbai to 8...

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Maharashtra taxman wants GST to be implemented from April 2011 instead of April 2010

He said that the white paper proposes that the Central GST and State GST, that is CGST and SGST, will be concurrently administered by the centre and the state. Mr. Bhatia seems to believe that this will lead to immense confusion because it means that for every transaction, every dealer has to go to two authorities. And in some way that so...

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MVAT circular on Filing of Refund Application in Form – 501 electronically

Trade Circular No. 33 T of 2009 (01/12/2009)

Trade Cir. No.33T of 2009 Electronic Filing of Refund Application in Form-501 has been mandatory from 1st of December 2009. Therefore, any dealer who desires to file Refund Application in Form-501, on or after 1st of December 2009 for any period(including period prior to 1-12-2009) shall file the same electronically....

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GST unnecessary criticism and genuine concerns

Threshold:Different thresholds have been proposed, Rs 10 lakh for SGST (lower for some underdeveloped states), Rs 1.5 crore for CGST for goods and a lesser amount (not indicated as yet) for services. Thus, there will be four thresholds which has been criticised by several analysts but one must remember it is different in many developed co...

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Date of reckoning for limitation period provided U/s.154(7) of Income Tax Act, 1961

CIT Vs Tony Electronics Ltd. (Delhi HC)

Once an appeal against the order passed by an authority is preferred and is decided by the appellate authority, the order of the said authority merges into the order of the appellate authority; with this merger, order of the original authority ceases to exist and the order of the appellate authority prevails; the limitation for the purpos...

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Full Central Excise Exemption to North Eastern Units Restored

The Gauhati High Court has restored the full exemption of Central Excise to the units in North eastern area under Area Based Exemption scheme vide Notification 32/99 & 33/99 dated 08.07.1999 as amended in 2007. The notification provided that the units operating in the area shall pay duty and portion of duty paid in cash shall be refunded ...

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Relaxation of the due date for the uploading of e-returns for the period ending September 2009

Trade Circular No. 29 T of 2009 (30/10/2009)

After the introduction of the e returns, the dealers were required to make the payment of tax within the prescribed date, but were permitted to upload the e returns within 10 days from the due date prescribed in the said Rule 17 (Please refer Trade Circular No 16T of 2008) Thus the dealers, who paid the tax within the due date and upload ...

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MVAT circular on extension of date for filing refund application electronically

Trade Circular No. 28 T of 2009 (15/10/2009)

In exercise of the powers conferred by sub-rule (2) of rule 17A of the Maharashtra Value Added Tax Rules, 2005, the requisite notification cited at reference was issued. As a result of this notification every registered dealer who is entitled to claim refund as provided under section 51 of Maharashtra Value Added Tax Act, 2002 was require...

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MVAT – Electronic Filing of Audit Report in Form -704

Trade Circular No. 27 T of 2009 (01/10/2009)

Any dealer who files Audit Report on or after 1st October 2009 for any period shall file the same in the new Form-704. Now, it is mandatory for all the dealers who are required to get their books of account audited as per the provisions of the section 61 of the MVAT Act, 2002 to file Audit Report in Form-704 electronically....

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MVAT circular on Periodicity of return filing for the period 01.04.09 to 31.03.10

Trade Circular No.26 T of 2009 (01/10/2009)

Nothing in this paragraph shall apply to the said registered dealer unless he applies to the Joint Commissioner of Sales Tax (Returns), in Mumbai or as the case may be Joint Commissioner of Sales Tax (VAT Administration) in rest of the State....

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Rate of service tax on contract entered after July 7th, 2009 where the developer supplies steel and cement free of cost to contractor

What would be the rate of service tax on contract entered after July 7th, 2009 where the developer supplies steel and cement free of cost to contractor? The Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 has been amended vide Notification No. 23/2009-ST, dated 07.07.09. The Explanation to sub-rule (3) was amend...

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E-filing of Sales tax returns been challenged in Kerala High Court

A writ petition challenging the decision of the State Government to implement e-filing of sales tax returns by dealers with effect from September 1 has been filed the Kerala High Court. The court on Tuesday adjourned hearing on the petition. The petitioner, Mr M.K. Haridas, who is the Manager of a Kochi-based partnership firm, submitted ...

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MVAT circular on Procedure for on line submission of application for obtaining registration under the MVAT Act, 2002

Trade circular No:- 25T of 2009 (25/09/2009)

TRADE CIRCULAR Date: 25th Sept, 2009 NO. MVAT/ Registration / e-101 Mumbai, Trade circular No:- 25T of 2009 Subject: – Procedure for on line submission of application for obtaining registration under the MVAT Act, 2002 Ref: – Notification no. VAT/AMD-1009/ IB/Adm-6, dated 26 August 2009 Gentlemen/Sir/ Madam, Present Procedure:...

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Revised Procedure for on line submission of application for obtaining registration under the MVAT Act, 2002

Trade circular No. 25 T of 2009 (25/09/2009)

Present Procedure: At present, the applications for registration are being made manually to the Registering Authority. On the receipt of the application, the application and the enclosed documents are verified by the Registering Authority and TIN Allotment Letter is issued on the same day. Tin certificates are being issued afterwards....

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Notification on Compulsory E- Filing of Form-101 related to MVAT registration

Notification No. VAT/AMD-1009/ IB/Adm-6 (26/08/2009)

In exercise of the powers conferred by sub-rule (1) of Rule 17A of the Maharashtra Value Added Tax Rules, 2005, the Commissioner of Sales Tax, Maharashtra State hereby provides that on or after 1st October 2009, the dealers, who are liable to...

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Summary of Amendments made by Maharashtra Value Added Tax (2nd Amendment) Rules 2009, dt 18th June 2009 w.e.f 01st July 2009

On 18th June 2009 the Government of Maharashtra has passed the Maharashtra Value Added Tax (2nd Amendment) Rules 2009 These amendments are brought into effect from 1st July 2009 unless otherwise specified. Following are the amendments which are made in the MVAT Rules: – ...

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MVAT Audit Repot in form 704 can be filed only online after 30th September 2009

Notification No. Vat/AMD-1009/IB/Adm.6 (21/08/2009)

In exercise of power conferred by sub rule (1) of Rule 17A of the Maharashtra Value Added tax Rules, 2005, The Commissioner of Sales Tax, Maharashtra hereby provides that the dealers who are liable to get the accounts audited as per the provisions....

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MVAT Dealers against whom business audit started after 1st April 2009 need to file form 801 electronically

Notification No. Vat/AMD-1009/IB/Adm.6 (21/08/2009)

No. Vat/AMD-1009/IB/Adm.6- In exercise of power conferred by sub rule (1) of Rule 17A of the Maharashtra Value Added tax Rules, 2005, The Commissioner of Sales Tax, Maharashtra hereby provides that the dealers in respect of whom the proceedings of business audit as per section 22 the Maharashtra Value Added tax Act, 2002 have commenced on...

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Mvat Refund Application in form 501 can be filed only online from 01.10.2009

Notification No. Vat/AMD-1009/IB/Adm.6 (21/08/2009)

The Commissioner of Sales Tax, Maharashtra hereby provides that the registered dealers who are entitled to claim the refund as provided under section 51 of the Maharashtra Value Added tax Act, 2002, Shall on or after 1st October 2009, Electronically upload the application in form 501, provided on the website of the Sales Tax Department....

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Extension of date for existing manual system for accepting applications for declarations prior to 1/04/2008

Trade Circular No. 23 T of 2009 (17/08/2009)

No. VAT/U.O.R.No. 88/JC(Reg.) Mumbai – Trade Circular No. 23 T of 2009, Dated : 17.08.2009 Sub.: Procedure for on line submission of application [Statement of Requirement ] for the statutory forms (C/F/H/EI/EII) under the Central Sales Tax Act, 1956 and delivery at the place of business of the dealer....

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Circular on Validity of Form ‘I’ under Central Sales Tax Act

Trade Circular No. 19 T of 2009 (20/06/2009)

Considering the genuine difficulty faced by the Trade in this respect, the instructions contained in Trade Circular No.8T of 2005 are being modified. Sales Tax authorities are instructed to also allow declarations in Form 'I' issued by Sales Tax authorities of other States. This will be applicable for a period of one year and the issue wi...

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No cut in CST rate this Year, will stay at 2%

At present, the tax, which is levied on inter state sale of goods, is at 2%. It was scheduled to be reduced by another 1%, starting April 1, 2009. At the time, the rate cut was postponed on account of the general elections and the Election Commission’s code of conduct. Recently, the empowered committee of state finance ministers wrote t...

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Mvat – Mandatory filing of e-return, Acceptance of returns/challans not containing valid TINs

Trade Circular No. 18 T of 2009 (11/05/2009)

As the banks shall not be accepting returns or the corresponding tax payments from such dealers and as they shall not be able to get themselves registered for e-services, their physical returns shall be accepted by the Sales Tax Department....

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Contract for sale of goods will not be covered within ambit of section 194C of Income Tax Act, 1961

Glenmark Pharmaceuticals Ltd. Vs ITO (TDS) [ITAT Mumbai]ITA NO. 935/Mum./2007, (05/03/2009)

23. After careful consideration of the above circular it is clear that the contract for the sale of goods will not be covered within the ambit of sec. 194 C. In the present case we find that the assessee placed orders with the manufacturers for manufacturing of the medicines strictly according to its specifications but the property in suc...

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Problems in E-return filing due to discrepancies in TINs or otherwise

Trade Circular No. 17 T of 2009 (20/04/2009)

In order to file electronic returns, the dealers are required to enroll themselves for the e services offered by the Department. It is noticed that some of the dealers have approached sales tax department with their difficulties regarding e enrollment or e filing of returns. The difficulties encountered by these dealers have been given du...

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Extention of date for existing mannual system for accepting applications for declarations till 30/06/2008: MVAT Cir-12T of 2009

Trade Circular No 12 T of 2009 (31/03/2009)

This circular cannot be made use of for legal interpretation of provisions of law. If any member of the trade has any doubt, he may refer the matter to this office for clarification....

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Amount settled under premature payment option, leading to future sales tax not payable, is revenue income

Schenectady Specialities Asia Pvt Ltd Vs ACIT (ITAT Mumbai)

Background The Mumbai Tribunal has recently held in the case of  Schenectady Specialities Asia Pvt. Ltd. that the difference between the sales tax collected but not deposited by the assessee with the Government under a sales tax deferral scheme, and the amount settled by the assessee under the premature payment option, is to be treated [...

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Govt cannot claim precedence over properties of Sales Tax defaulter: HC

The Tamil Nadu government cannot claim precedence over properties of a sales tax defaulter who has secured bank finance unless the Sales Tax Act had a specific Provision creating first charge (first call on Property) in favour of the government, the Madurai bench of the Madras High Court ruled on Monday. Justice Chitra Venkataraman, allow...

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SC ask telcos to move appropriate forum on sales tax issue

The Supreme Court on Monday asked the telecom majors Bharti Airtel and Hathway and Datacom Pvt Ltd to move appropriate authority to decide whether transactions related to providing broadband services to subscribers can be treated as “sale of light energy'' for levying sales tax. A bench headed by Justice Mr S H Kapadia while setting asi...

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Recovery of sales tax and recovery of dues to Public Works Department not permissible without consent of BIFR

B.V.V. Paper Industries Ltd. vs. Commercial Tax Officer [(2008) 145 Comp. Cas 815 (Mad]) The Petitioner Company became side and a reference was filed before the Board for Industrial & Financial Reconstruction (BIFR) u/s. 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) for declaring the company a sick company a...

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Sales tax hounds comb Mumbai for Tax evaders

The Department of Sales Tax has issued 1 lakh notices to traders in the last two months for tax evasion. It has also filed 431 FIRs against them for not filing returns. Raids, surveys and business audits have been further intensified. Sources said that hundred of crores of bogus bills and hawala transactions have been unearthed by the dep...

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MVAT: Extension of due date for Submission of Audit Report for year 2007-08 with conditions

VAT/ AMD-1008/IB/ ADM-06 (23/01/2009)

No. VAT/ AMD-1008/IB/ ADM-06 Mumbai Dt: 23rd January, 2009 Trade Cir. 3 T of 2009 Sub : Submission of Audit Report for year 2007-08. Ref. : 1. Government Notification No. VAT-1508/C.R. -69/ Taxation-1 dated 10th November, 2008. 2. Trade Circular 39 T of 2008 No. VAT/ AMD-1008/IB/ ADM-06 dated 15th November, 2008. 3. Trade Circular [&helli...

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Due date of Form 704 in respect of the year 2007-08

After e-enrolment is made by a registered dealer, the ‘Acknowledgment’ will be made available on the website. The signed copy of the Acknowledgment is required to be furnished in the Department only once. After furnishing such copy, there is no need to furnish the signed acknowledgment of e-return which at present is required to be fu...

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Circular for extention of MVAT Audit Report Submission Date

Trade Circular No. 27 T of 2008 (31/07/2008)

No.VAT/MMB-1006/152/Adm-3(Adm-6) Mumbai, dt. 31.07.2008 The Hon’ble High Court has dismissed the Writ petition No. 2000 of 2007 and allied petitions regarding Form 704. The date for filing of Form 704 was extended by the High Court to 30th June 2008. Accordingly, a trade circular cited at reference 13 was issued and the date for filing ...

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CST rate to be cut to 2% from June 1, 2008

After much bickering with states, the finance ministry today reduced the central sales tax (CST) rate on inter-state sales from 3 per cent to 2 per cent with effect from June 1.The ministry notified the rate-cut to the states despite differences on compensating them for losses of about Rs 13,000 crore in 2008-09 because of the cut. CST wa...

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MVAT – Circular on Grant of Refunds – Bank Guarantee

Trade Circular No. 6 T of 2008 (01/03/2008)

Trade Circular No. 6 T of 2008 Section 51 of the Maharashtra Value Added Tax Act, 2002 deals with grant of refunds. The corresponding Rules are Rule 60 and Rule 61 of the Maharashtra Value Added Tax Rules, 2005. The provisions of Bank Guarantee are prescribed in Rule 61. The Trade Circulars No. 33T of 2005 Dt. 21.10.2005 and 56 T Dt.23.08...

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Circular on Grant of Certificate for TDS

Trade Circular No. 4 T of 2008 (26/02/2008)

Trade Cir. No. 4 T of 2008 Section 31 of the Maharashtra Value Added Tax Act, 2002 provides for deduction of tax at Source. Section 31(1) (b) (ii) of the Act empowers the Commissioner of Sales Tax to grant certificate to a contractor who is not doing Works contract. Where an application is made by the contractor and if the Commissioner is...

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Payments of service tax as also VAT are mutually exclusive

Imagic Creative (P.) Ltd. v. Commissioner of Commercial Taxes Payments of service tax as also the VAT are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract as contradistinguished from an indivisible contract. ...

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Excise, sales tax will not form part of total turnover Sec. 80HHC

Commissioner of Income-tax Vs Catapharma (India) (P.) Ltd. (Supreme Court of India)

Commissioner of Income-tax v. Catapharma (India) (P.) Ltd.- Section 80HHC of the Income-tax Act, 1961 - Deductions - Exporters - Assessment year 1997-98 - Whether excise duty and sales tax form part of total turnover while computing deduction under section 80HHC - Held, no....

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