Intangible goods tax: local, interstate or export sales?

By Rahul Jain, Economic Laws Practice
0
1977

As held by the Supreme Court in 20th Century Finance Corporation v State of Maharashtra, the situs or site of sale of intangible goods is the place where the agreement is executed or signed. Accordingly, if the agreement for sale of intangible goods is executed outside India, it will be a “sale outside India”.

For such sales, according to section 4 of the Central Sales Tax Act, 1956 (CST Act), no tax can be levied as it is located beyond the territorial jurisdiction of the country.

However, in Duphar Interfran Limited v The State of Maharashtra the Maharashtra Sales Tax Tribunal held that even sale agreements executed outside India are liable to tax in respect of sale of trademarks in the state of Maharashtra. Further, it has applied the criterion of location of goods where these goods are available for use after sale in order to determine whether it was local or interstate or export sale.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Economic Laws Practice is a full-service law firm headquartered in Mumbai with offices in New Delhi, Pune and Ahmedabad. Rahul Jain is an associate at the firm. He can be contacted at rahuljain@elp-in.com.

ELP

Economic Laws Practice

1502 A Wing, Dalamal Towers

Free Press Journal Road

Nariman Point, Mumbai 400021

India

Tel: +91 22 6636 7000

Fax: +91 22 6636 7172

Email: rohanshah@elp-in.com