BP Associates LLP

11 Net tax

(1) The net tax payable by a dealer for a tax period shall be determined by the

formula:

Net Tax = O – I – C

where

O = the amount of tax payable by the person at the rates stipulated in section

4 of this Act in respect of the taxable turnover arising in the tax period,

adjusted to take into account any adjustments to the tax payable required by

section 8 of this Act.

I = the amount of the tax credit arising in the tax period to which the person

is entitled under section 9 of this Act, adjusted to take into account any

adjustments to the tax credit required by section 10 of this Act.

C = the amount, if any, brought forward from the previous tax period under

sub-section (2) of this section.

(2) 2[Where the net tax of a dealer calculated under sub-section (1) of this

section amounts to a negative value, the dealer shall -

(a) adjust the said amount in the same tax period against the tax payable by

him under the Central Sales Tax Act, 1956 (74 of 1956), if any; and

(b) be entitled to carry forward the amount remaining after application under

sub-section (2)(a) to next calendar month or tax period, as the case may be, of the

same year, or

claim a refund of the amount remaining after application under sub-section

(2)(a) at the end of a tax period of the same year and the Commissioner shall deal with

the refund claim in the manner described in section 38 and section 39 of this Act.

Explanations 1. Refund can be claimed at the end of a tax period only.

2. Excess tax credit should not be carried forward to the next year.

3. Refund of excess tax credit carried forward from previous years

should be claimed in any of the remaining tax periods of year 2013-2014 but not

later than the last tax period ending on 31.03.2014.

4. Excess tax credit remaining at the end of a tax period can either be

claimed as refund or carried forward to next tax period of the same year.

5. Excess payment made inadvertently shall also be treated as credit in a

month or tax period as the case may be.]

[11A Tax on goods supplied by contractee

representing the value of the goods supplied by the contractee to the contractor in the

execution of works contract in which the ownership of such goods remains with the

contractee under the terms of the contract and the amount representing the value of

the goods supplied by the contractee to the contractor does not form part of the

contract and is not deductible from the amount payable to the contractor by the

contractee for the execution of the works contract.]