plasco limited vs luqman construction limited another 2016 tzhc 2030 26 may 2016

plasco limited vs luqman construction limited another 2016 tzhc 2030 26 may 2016

The plaintiff paid VAT to TRA for goods supplied to the first defendant, who was the recipient and thus liable for VAT under the law. The plaintiff is entitled to recover the VAT amount and outstanding invoice from the first defendant, as the sale contract was between them and no exemption was processed.

Citation
plasco limited vs luqman construction limited another 2016 tzhc 2030 26 may 2016
Parties
Plaintiff: Plasco Limited; First Defendant: Luqman Construction Limited; Second Defendant: Morogoro Urban Water Supply and Sewerage Authority (MORUWASA)
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
26 May 2016
Procedural Posture
Commercial Case / Final Judgment
Outcome
judgment for plaintiff
Legal Topics
VAT Liability, Statutory Obligations, Contractual Payment, Tax Exemption Procedures
Source Language
English
Tax Law Contract Law Commercial Law VAT Liability Statutory Obligations Contractual Payment Tax Exemption Procedures

Case Brief

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Parties

Plasco Limited

Plaintiff

Luqman Construction Limited

First Defendant

Morogoro Urban Water Supply and Sewerage Authority (MORUWASA)

Second Defendant

Procedural Posture

Commercial Case / Final Judgment

Legal Issues

  1. 1 Whether the plaintiff paid Tshs. 120,696,021/= as VAT to TRA
  2. 2 Whether the plaintiff has the right to recover the VAT amount from the defendant
  3. 3 Whether there is an outstanding payment in respect of invoice No. TINV002311

Ratio Decidendi

The plaintiff paid VAT to TRA for goods supplied to the first defendant, who was the recipient and thus liable for VAT under the law. The plaintiff is entitled to recover the VAT amount and outstanding invoice from the first defendant, as the sale contract was between them and no exemption was processed.

Court Disposition

judgment for plaintiff

Orders

  • First defendant to pay plaintiff Tshs. 120,696,021/= as VAT and outstanding invoice amount
  • First defendant to pay interest at 19% per annum from filing to judgment