Input Tax Adjustment in Sales Tax Act 1990

TAX

a scale with coins and garlic on top of it
a scale with coins and garlic on top of it
Whether the adjustment of ‘input tax’ from the ‘output tax’ provided under section 7(1) of the Sales Tax Act can be availed without any limitation of time?

The provision does not stipulate any condition or restriction of time for adjustment of the ‘input tax’ from the ‘output tax’ payable in respect of taxable supplies made in a tax period. The stipulation of time, that is, a tax period, is with regard to determining the tax liability of the ‘output tax’ on taxable supplies made by the tax payer during that period, and does not relate to the period of payment of ‘input tax’ on the taxable supplies received by him.

What is relevant provision of the Sales Tax 1990 dealing with refund of tax claimed to have been ‘paid or over paid’ through ‘inadvertence, error or misconstruction’?

Section 66 of the Sale Tax Act 1990 provides for refund of tax claimed to have been ‘paid or over paid’ through ‘inadvertence, error or misconstruction’ and prescribes a period of one year for preferring such claims.

Whether there is period of limitation prescribed for seeking the refund under section 66 of the Sale Tax Act 1990?The period of limitation prescribed for seeking the refund under section 66 of the Sale Tax Act 1990 is one year from the date of over-payment of tax that is, when ‘output tax’ was paid by the registered person without adjusting the ‘input tax’. 

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