09-20-2010, 07:20 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Safoora</i>
<br />Mr A and B signed a contract on 20th may 2010 under which mr. A will supply good x to mr. B within two months.. at the time of entring the contract the goods were exempt from sales tax.. later on the govt withdrew the exemption...
25% advance was paid paid on the signing of contract and balance on delivery of goods on 15th july 2010..
Advise mr. A on charge-ability of tax..
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Mere entering into the contract will not extinguish the sales tax bar and Tax will be applicable.
However, if the invoice was issued at the date of contract (irrespective of whether payment will be made in future date) then no tax would have been applicable regardless of the fact that exemption has been withdrawn, since date of invoice is important in this case.
Best Regards,
<br />Mr A and B signed a contract on 20th may 2010 under which mr. A will supply good x to mr. B within two months.. at the time of entring the contract the goods were exempt from sales tax.. later on the govt withdrew the exemption...
25% advance was paid paid on the signing of contract and balance on delivery of goods on 15th july 2010..
Advise mr. A on charge-ability of tax..
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Mere entering into the contract will not extinguish the sales tax bar and Tax will be applicable.
However, if the invoice was issued at the date of contract (irrespective of whether payment will be made in future date) then no tax would have been applicable regardless of the fact that exemption has been withdrawn, since date of invoice is important in this case.
Best Regards,
