Introduction

In indirect state taxation, it is the liability of the registered dealer to collect and remit tax @ as provided in the tax statute. In Kerala (India), value added taxation was implemented from 01-04-2005. Under this, VAT system of taxation, a dealer is liable to pay tax on the value addition made by him if he had paid tax on his purchases within the State of Kerala i.e, tax payability=(output tax collected-input tax paid on purchases). So if you are not liable to pay tax, don't pay and never pay.