Tax World

Sales Tax

P. C. Joshi, Advocate

News for Developers – Builders

The Division bench of the Supreme Court consisting of Hon’ble Mr. Justice S. H. Kapadia and Hon’ble Mr. Justice B. Sudershan Reddy passed an order on 19th August 2008 in the case of M/s Larsen & Toubro Ltd., directing the office of the Supreme Court to place the matter before the Hon’ble Chief Justice for necessary direction of placing the case of M/s K. Raheja Constructions before a Larger Bench for its reconsideration.

The Supreme Court in that regard referred to the relevant provisions of the Karnataka Sales Tax Act, the definitions of the term ‘sale’ and ‘works contract’ under the said Act, and Para 20 of the judgment in the case of M/s Raheja Development Corporation and observed that they were unable to accept the proposition laid down in the said para.

M/s Larsen & Toubro Ltd. & Another vs. State of Karnataka & Another. SLP (Civil) No. 17741 of 2007 dated 19th August, 2008.

News from Kerala

The Kerala Government, through Rule 97(3)(e) of the Kerala VAT Rules, 2005, have provided a statutory requirement for enrolment of a Sales Tax Practitioner by providing one year distance education programme for graduates. Upon passing the same, Post Graduate Diploma in Taxation (PGDT) would be conferred. The syllabus for the programme include Kerala VAT Laws & Practice, Central Sales Tax Laws & Practice, Income Tax Laws & Practice, Accountancy, Economics of Taxation and Office Management. The students have also been offered contact class programme, practical coaching and assignments etc.

Source : Kerala Tax Reporter, Vol. 16 Part VIII, August 2008.

(Editorial Note :- We congratulate the Government of Kerala for arranging the course for the future Sales Tax Practitioners, through distant education programme as well as contact class programmes. We hope other States will emulate the State of Kerala, so that the standard and quality of the Practitioners can be raised to a higher level).