{"id":212602,"date":"2019-03-28T20:58:50","date_gmt":"2019-03-28T15:28:50","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=212602"},"modified":"2019-04-05T10:47:48","modified_gmt":"2019-04-05T05:17:48","slug":"sc-explains-meaning-of-total-turnover-under-the-karnataka-sales-tax-act","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/28\/sc-explains-meaning-of-total-turnover-under-the-karnataka-sales-tax-act\/","title":{"rendered":"SC explains meaning of \u201ctotal turnover\u201d under the Karnataka Sales Tax Act"},"content":{"rendered":"

Supreme Court<\/strong>: While examining the\u00a0applicability\u00a0of\u00a0the\u00a0turnover\u00a0tax\u00a0as\u00a0defined\u00a0under Section\u00a06 B(1)\u00a0of\u00a0the\u00a0Karnataka\u00a0Sales\u00a0Tax\u00a0Act,\u00a01957, the bench of AM Khanwilkar and Ajay Rastogi<\/strong>, JJ held:<\/p>\n

\n

\u201cthe expression \u2018total turnover\u2019 which has been incorporated as referred to under Section 6\u00adB(1) is for the purpose of identification of the dealers and for prescribing different rates\/slabs. The first proviso to Section 6\u00adB(1) provides an exhaustive list of deductions which are to be made in computation of such turnover with a further stipulation as referred to in second proviso that except for the manner provided for in Section 6\u00adB(1), no other deduction shall be made from the total turnover of a dealer.\u201d<\/p>\n<\/blockquote>\n

The Court said that the expression \u201ctotal turnover\u201d and \u201cturnover\u201d which has been used under Section 6\u00adB has the same meaning as defined under Section 2(1)(u\u00ad2) and 2(v) of the Act. Under Section 6\u00adB, reference is made on \u2018total turnover\u2019 and not the \u2018turnover\u2019 as defined under Section 2(v) of the KST Act and taking note of the exemption provided under first proviso clause(iii), exclusion has been made in reference to use of sale or purchase of goods in the course of inter\u00adstate trade or commerce.<\/p>\n

It was contended before the Court that the \u2018total turnover\u2019 in Section 6\u00adB(1) is to be read as \u2018taxable turnover\u2019 and the determination of the rate of the turnover tax is to be ascertained on the \u2018taxable turnover\u2019. The Court held that this submission was unsustainable and deserved outright rejection.<\/p>\n

It said:<\/p>\n

\n

\u201cthe expression \u2018total turnover\u2019 has been referred to for the purpose of identification\/classification of dealers for prescribing various rates\/slabs of tax leviable to the dealer and read with first and second proviso to Section 6\u00adB(1), this makes the intention of the legislature clear and unambiguous\u00a0\u00a0 that except the deductions provided under the first proviso to Section 6\u00adB(1) nothing else can be deducted from the total turnover as defined under Section 2(u\u00ad2) for the purpose of levy of turnover tax under Section 6\u00adB of the Act.\u201d<\/p>\n<\/blockquote>\n

[Achal Industries v. State of Karnataka, 2019 SCC OnLine SC 428<\/b><\/a>, decided on 28.03.2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Supreme Court: While examining the\u00a0applicability\u00a0of\u00a0the\u00a0turnover\u00a0tax\u00a0as\u00a0defined\u00a0under Section\u00a06 B(1)\u00a0of\u00a0the\u00a0Karnataka\u00a0Sales\u00a0Tax\u00a0Act,\u00a01957, the bench of AM Khanwilkar and Ajay Rastogi, JJ held: \u201cthe expression \u2018total turnover\u2019 which <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,9],"tags":[2758,11091,34596,34597],"class_list":["post-212602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-sales_tax","tag-taxation","tag-total-turnover","tag-turnover-tax"],"yoast_head":"\nSC explains meaning of \u201ctotal turnover\u201d under the Karnataka Sales Tax Act | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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