State Act

THE KARNATAKA SALES TAX ACT, 1957

1[18. Collection of tax by dealers.- (1) (a) A person who is not a registered dealer liable to pay tax shall not collect any amount by way of tax or purporting to be by way of tax under this Act; nor shall a registered dealer collect any amount by way of tax or purporting to be by way of tax at a rate or rates exceeding the rate or rates 2[at which he is liable to pay tax under the provisions of this Act.]2 3[x x x]3 (b) No person shall collect any amount by way of tax or purporting to be by way of tax in respect of sales of any goods 1[or any transaction]1 on which no tax is payable by him under the provisions of this Act. (2) Notwithstanding anything contained in sub-section (1), a dealer who has been permitted to pay any amount by way of composition 1[under sub-section (1)2[x x x]2 3[4[x x x]4 or sub-section (8)]3 of section 17]1 or a dealer who is exempted from sales tax by virtue of recognition granted under the provisions of this Act, shall not collect any amount by way of tax or purporting to be by way of tax on the sales or purchases of goods made during the period to which such composition or recognition applies. 1[(3) Notwithstanding anything contained in sub-sections (1) and (2), no dealer who is liable to pay additional tax under section 6-C shall collect any amount by way of such additional tax or purporting to be by way of such additional tax payable by him.]1