Karnataka Value Added Tax Rules, 2005

M/s. M.K. Agro Tech Pvt. Ltd. (the assessee) purchased sunflower oil cake, paid input VAT, extracted oil (taxable) and sold the de‑oiled cake (exempt under Section 5). The State of Karnataka argued that only a partial rebate of input tax was permissible under Section 17 of the Karnataka Value Added Tax Act read with Ru…

M/S Southern Motors, a registered dealer under the Karnataka Value Added Tax Act, 2003, issued tax invoices for vehicle sales and later granted post‑sale discounts through credit notes, retaining only the net amount. The Assessing Authority disallowed deduction of these discounts from total turnover, insisting that a d…

The State of Karnataka appealed against the High Court’s order allowing Input Tax Credit (ITC) claimed by several purchasing dealers, including M/s Ecom Gill Coffee Trading Private Limited. The Assessing Officer had denied ITC on the ground that the transactions were not genuine and the sellers were either deregistered…

Maya Appliances (now Preethi Kitchen Appliances) manufactures home appliances and offers quantity discounts to its distributors based on their quarterly performance. The discounts are applied to the net sale price and VAT is collected on that net amount. The assessing authority disallowed the discounts as deductions fr…