Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

VAT Free medicines not to levy tax on basis of MRP

Mapra Laboratories Pvt. Ltd. and others (the Petitioners) were engaged in manufacture and sale of medicines and had been regularly filing returns to the concerned Authorities. The Petitioners were claiming an exemption in respect of free of cost supply of medicines to its dealer under a scheme, which was in the nature of quantitative or trade discount on the purchase of certain quantity of medicines.

The Department had denied the exemption claim on the ground that such transactions would be liable to VAT in terms of Section 15(5)(b) of Bihar Value Added Tax Act, 2005 (the Bihar VAT Act) which provides an option under Compounding Scheme to certain class of registered dealers to pay in lieu of the tax payable by them, tax at the rate specified in Section 14, on the maximum retail price of such goods in the manner prescribed.

Being aggrieved, the Petitioners had filed a writ petition before the Hon’ble High Court of Patna. The Hon’ble High Court of Patna relied upon the judgment of Hon’ble Apex court in the case of State of Rajasthan & Anr. Vs. Rajasthan Chemist Association [(2006) 147 STC 542 (SC)].

Wherein it has been held that the Notification to the extent it intends to levy tax on first point sale with reference to price which could be charged in respect of a subsequent sale which has not come into existence at the time liability of tax arises and is determined ex hypothesis is unsustainable on that basis.

Relying upon the aforesaid judgment, the Hon’ble High Court held that the State Government isn’t competent to levy tax on the basis of Maximum retail price or any other notional value and further held that the State Government can’t provide an option to the concerned dealer to pay VAT in such manner. Accordingly, held that Section 15(5)(b) of the Bihar VAT Act is ultra vires.

VAT Free medicines not to levy tax on basis of MRPVAT free supply of medicines not to levy tax on basis of MRP

At CAKART you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visit and chat with our counsellors any time. We are happy to help you make successful in your exams.

Click here to download FREE CA CS CMA books







Leave a comment

Your email address will not be published. Required fields are marked *